EU Parliament Committee Approves Digital Euro Bill

The European Parliament's Economic and Monetary Affairs Committee (ECON) voted 43 to 14 on June 23 in favor of its position on the digital euro bill. This is a key step before a full parliament vote, after which trilogue negotiations begin between the EP, the Council of the EU, and the European Commission. The European Central Bank is targeting a 2029 launch for the digital euro.

What the committee approved and why it matters

ECON is the parliament's lead committee on monetary and financial regulation. Its approval clears the path to a plenary vote, where lawmakers can back the position or propose amendments. The 43-14 result shows broad consensus across party groups, though talks ran for months.

"The package protects citizens' freedom to choose how they pay. The digital euro will complement cash, but never replace it."

- Fernando Navarrete Rojas, MEP rapporteur, from the European Parliament official announcement, June 23, 2026

The package covers rules for offline and online payments, privacy safeguards, holding limits, and distribution terms through banks and payment providers. Two points drove the most friction between groups: no interest payments and holding caps.

Online and offline: how do the two modes differ?

The digital euro will work in two ways. Online transactions link to an ECB account and route through a commercial provider. The offline mode stores funds directly on the device with no internet connection needed.

The offline version follows the cash model. A lost device means funds are gone with no refund. No insurance funds, no backups. This design choice is what makes genuine anonymity possible for small day-to-day transactions where tracking would be excessive.

Distribution will run through banks, payment providers, post offices, and regulated crypto firms. Account opening and basic payments will be free. Additional services will carry fees, capped by the regulator.

Will there be privacy?

Privacy became the sharpest debate point during the drafting process. Critics of central bank digital currencies warned that a CBDC would give governments full visibility into every citizen's spending. The approved text tries to address that concern head-on.

The ECB will not have direct access to personal payment data. Transactions will use zero-knowledge proof (ZKP) technology, which confirms that a payment happened without revealing the identity of the parties.

Online transactions still leave a trail with the commercial provider, but that data does not flow directly to the ECB. Offline payments are designed to be fully anonymous between the two parties, similar to handing over cash.

Three restrictions that sparked the sharpest debate

Three clauses in the package were the most contested well before the committee vote.

• No interest. The digital euro will not pay returns to holders. The goal is to prevent a mass shift from bank deposits to ECB wallets, which could drain liquidity from the banking system.
• Holding limits will be set by the European Commission based on ECB recommendations, with regular reviews. Specific amounts are not fixed in the bill.
• Businesses can only hold digital euros for up to 24 hours before automatic transfer to a regular account.
• Most businesses will be required to accept the digital euro. Micro-businesses and self-employed workers who do not yet accept card payments will be exempt.

Launch timeline and competition from the private sector

Once parliament votes, three-way talks begin with the Council of the EU and the European Commission. The ECB will finalize technical standards and run pilots with payment providers. After the law passes, a transition period of at least two years follows.

A 2029 start date remains the most realistic target. The project has been in development since 2020 and has already slipped several times due to unfinished legislation. ECB Executive Board member Piero Cipollone confirmed this timeline as recently as September 2025.

A private alternative is taking shape at the same time. The Qivalis consortium, which includes 37 banks from 15 countries, among them ABN AMRO, Rabobank, and Nordea, is building a regulated euro stablecoin and targeting a second-half 2026 launch. If it hits the market before the official CBDC, competition with USDT and dollar stablecoins in the EU market will intensify far earlier than the ECB expected.