The European Parliament’s Economic and Monetary Affairs (ECON) Committee on Tuesday backed a comprehensive framework for the digital euro, clearing the way for final legislative negotiations with member states and the European Commission.
The initiative aims to provide a secure and innovative payment option for consumers and businesses while strengthening Europe’s strategic autonomy in payments. The digital euro would be available in both online and offline forms, with offline transactions designed to function similarly to cash and supported by strong privacy protections.
Under the proposal, distribution would be handled by banks, payment providers, e-money institutions and regulated crypto asset firms, with broad acceptance requirements for merchants.
Consumers would be able to access essential services free of charge, while fee limits would apply to merchant and inter-provider charges. Lawmakers also proposed safeguards to protect financial stability, including limits on individual holdings and restrictions on business use, while ensuring the digital euro remains non-interest-bearing.
The package also includes provisions to preserve access to cash and ensure resilience in payment systems. According to lead negotiator Fernando Navarrete Rojas, the objective is to expand payment choice by offering a secure European digital alternative while protecting the continued use of cash.
Alongside preparations for a retail digital euro, the ECB is also developing wholesale CBDC infrastructure and plans to begin testing related settlement solutions in 2026.
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