TLDR
- The European Parliament’s ECON Committee approved the digital euro package by 43 votes to 14.
- The proposal strengthens legislative preparations for the potential launch of a digital euro in 2029.
- Lawmakers said a digital euro would complement cash rather than replace it.
- The framework allows digital euro payments both online and offline.
- Offline transactions will use local device storage and operate similarly to cash.
The European Parliament’s Economic and Monetary Affairs Committee conveyed its decision Digital euro Motion forward on Tuesday. Lawmakers agreed with the committee’s position by a vote of 43 to 14, and approved another legislative step. The decision supports ongoing preparations for the potential launch of a central bank digital currency in 2029.
A digital euro proposal moves through parliament
the Committee Supported rules that would govern a future digital euro across the eurozone.
Fernando Navarrete Reds said the package “Protects citizens’ freedom to choose their method of payment.” He also stated that a digital euro “will complement cash, never replace it.”
The proposal assigns release responsibilities to European Central Bank. It also allows online and offline payments within the planned framework. Lawmakers have defined separate systems for each payment method.
Online transactions are based on an account-based structure. Offline payments will use local storage on the device and provide cash-like functionality. The approved text states that losing the device also means losing offline money.
The proposal includes privacy measures designed to limit access to personal information. It supports tools such as zero-knowledge proofs to verify transactions.
According to the committee’s announcement. “The ECB will not have access to personally identifiable data.”
Lawmakers also included limits for individuals. The European Commission is scheduled to set these limits after receiving the recommendations of the European Central Bank. The authorities will review the thresholds regularly.
The draft rules specify the use, distribution and schedule
The proposal prevents the digital euro from paying interest. Businesses can temporarily hold the digital euro while collecting incoming payments. However, the draft generally limits this period to 24 hours.
Most businesses will need to accept the digital euro once it launches. The proposal provides exemptions for very small businesses and some self-employed workers. These exemptions apply when businesses do not already accept digital payments.
Basic services will remain free to users. The account access and payment functions will not incur any fees. Offline transactions will also remain free under the draft framework.
The legislation specifies a distribution model that includes banks and payment service providers. Regulated cryptocurrency companies can also engage in distribution activities. Post offices and electronic cash service providers can support access via Eurozone.
Before its launch, the ECB must complete technical standards and pilot programmes. The institution must also coordinate implementation with payment service providers. After final approval, the authorities will begin a rollout period that will last for at least two years.
The committee’s vote comes after years of work on the project. The European Central Bank began laying the groundwork for the initiative in 2020. ECB Executive Board member Piero Cipollone said last September that the launch was likely to take place in 2029.
Last month, Kevalis expanded its banking consortium to include 37 institutions. New members include: ABN AMRO, Rabobank, Nordea and Intesa Sanpaolo. The consortium still aims to launch a regulated euro stablecoin initiative in the second half of 2026.
“We don’t just build paylines,” Howard Davis said. He added that the group aims to integrate European standards into future digital money systems. CoinGecko data shows that USD stablecoins currently account for 98% of the market.
