The European Parliament has given the green light to the digital euro: details and timeline for the launch of the CBDC
The European Parliament's Committee on Economic and Monetary Affairs has officially approved the bill on the introduction of the digital euro. The decision was passed by a significant majority: 43 votes in favor, 14 against, and one abstention. This is a key step towards launching the first pan-European central bank digital currency (CBDC).
How the digital euro will work
The digital euro, issued by the European Central Bank (ECB), will be an electronic form of fiat money. Two modes of operation are envisaged: online (via a bank account) and offline (via a local storage on the user's device). The offline mode is equivalent to cash: if the device is lost, the funds will be irretrievably lost. Technologies similar to zero-knowledge proofs are planned for transaction verification, allowing operations to be confirmed without disclosing personal data.
Distribution of the digital euro can be handled by banks, payment providers, post offices, electronic money issuers, and regulated crypto asset service providers. Most companies will be required to accept the asset, except for small and micro-enterprises that do not support other digital payments. Basic services for users—account opening, storage, and fund management—will remain free.
Limits and protection of the banking system
To mitigate risks to the traditional banking system, limits on holding digital euros for citizens will be introduced. The specific amount has not yet been determined: it will be set by the European Commission based on ECB recommendations and reviewed at least every two years. This is intended to prevent a massive outflow of deposits from commercial banks.
Timeline and roadmap
Before a full launch, the ECB must build the infrastructure, conduct real-world pilot tests, and clarify liability rules, especially regarding offline risks, including double spending. After authorization, a deployment period of at least 24 months is envisaged. According to current ECB estimates, if legislation is adopted in 2026, the first pilot transactions could begin in mid-2027, with a potential first issuance of the digital euro possible in 2029.
Competition with private stablecoins
In parallel, European banks are developing a private alternative—the Qivalis project for a regulated euro stablecoin, whose number of participants has grown to 37, including ING, BNP Paribas, and UniCredit. The launch is planned for the second half of 2026. However, the ECB has warned that issuing euro stablecoins could reduce bank lending and complicate control over interest rates.
My analysis: The European Parliament's support for the bill is not just a bureaucratic procedure, but a clear signal to the market. Europe is betting on a sovereign digital currency to reduce dependence on external payment infrastructures (in October 2025, the ECB noted that nearly two-thirds of card transactions in the eurozone are processed by non-European companies). However, the success of the digital euro will depend on the balance between user privacy and regulatory requirements, as well as whether it can compete with existing private stablecoins and cryptocurrencies.