EU council backs online and offline rollout of digital euro

The Council of the European Union has endorsed plans to launch the European Central Bank’s digital euro in both online and offline formats.

The decision aligns with the ECB’s proposed framework for introducing a central bank digital currency across the bloc.

A policy document published on Friday confirmed support for rolling out the two versions at the same time.

EU officials said the dual approach is intended to balance innovation, usability and consumer privacy.

The digital euro is designed to complement physical cash rather than replace banknotes entirely.

Lawmakers stressed that the final structure will depend on approval through the EU legislative process.

It's now for the European Council and certainly later on for the European Parliament to identify whether the Commission proposal is satisfactory, how it can be transformed into a piece of legislation or amended.

Christine Lagarde said.

The online version of the digital euro would operate through conventional electronic payment systems.

The offline version would allow transactions to take place without an internet connection.

Offline payments are intended to offer cash-like privacy protections for users.

Transaction data for offline payments would remain only with the sending and receiving parties.

Payments would rely on authorised devices exchanging central-bank-signed digital euro tokens.

The system would use proximity-based technologies such as near-field communication.

Experts have warned that enforcing physical proximity in digital systems may prove difficult.

The European Data Protection Board said available countermeasures are limited.

It concluded that physical proximity cannot be reliably guaranteed in a digital currency.

Private keys would be stored in secure elements of certified mobile devices and smart cards.

Officials argue the design improves resilience during network outages.