Why did the European Parliament approve the digital euro proposal?

The European Union digital euro proposal aims to create a central bank digital currency that can be used across the eurozone. The Economic and Monetary Affairs Committee approved its position on the legislation by a 43–14 vote, moving the project closer to implementation.

What does the digital euro proposal mean for everyday payments?

The European Union digital euro would support both online and offline payments if approved. Offline transactions would use local device storage and are designed to function in a way that resembles cash payments.

How is the European Union digital euro designed to protect privacy?

The European Union digital euro proposal includes privacy features such as zero-knowledge proofs and limits on access to personal data. The legislation states that the European Central Bank would not have access to users’ personal identification information.

What are the holding limits and interest rules for the European Union digital euro?

The European Union digital euro would not pay interest and would be subject to holding limits. The proposal states that the European Commission would set those limits based on recommendations from the European Central Bank and review them regularly.

What happens next for the European Union digital euro project?

The European Union digital euro project still requires further legislative approval, technical development and pilot testing before launch. The European Central Bank is currently targeting a potential rollout in 2029, subject to completion of the required steps.

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EU digital euro bill clears key vote

Written by Heidi Cuthbert Published Jun 24, 2026, 12:10 AM

The European Parliament's Economic and Monetary Affairs Committee approved its digital euro position by a 43–14 vote.
The proposal includes offline payments, privacy safeguards, holding limits and no interest payments.
The European Central Bank is targeting a potential digital euro launch in 2029, subject to legislative approval.

The European Parliament's Economic and Monetary Affairs Committee approved its position on the digital euro package by a 43–14 vote, moving the proposed central bank digital currency closer to implementation.

The vote advances legislative work on a digital euro framework as the European Central Bank continues preparations for a possible launch in 2029 after several years of policy development.

“The digital euro would complement cash, never replace it,” said Member of the European Parliament Fernando Navarrete Rojas.

Under the proposal, the digital euro would support both online and offline payments, include privacy protections such as zero-knowledge proofs, prohibit interest payments and impose holding limits based on European Commission decisions and ECB recommendations.

The legislation also outlines a distribution model involving banks, payment providers, e-money firms and regulated crypto companies, while the ECB would need to complete testing and technical preparations before launch; following the announcement there was no immediate market reaction tied to the proposal.

The ECB first began laying the groundwork for a digital euro in 2020, but progress has been delayed by the need to finalise legislation and operational requirements.

The committee vote comes as European institutions also explore private-sector alternatives, including euro-denominated stablecoin projects such as Qivalis, which expanded to 37 member institutions and is targeting a second-half 2026 launch.