The European Parliament has approved the digital euro: pilot launch scheduled for 2027.
The key committee of the European Parliament on economic and monetary affairs has given the green light to the digital euro bill. The decision was passed by a significant majority: 43 votes in favor, 14 against, with one abstention. This is a crucial step towards the introduction of the first official central bank digital currency (CBDC) in the eurozone.
The digital euro is conceived as an electronic form of cash, issued directly by the European Central Bank (ECB). The key innovation is a hybrid model: the asset will operate both online (via a traditional account) and offline, using local storage on the user's device. An important nuance: the offline digital euro is legally equivalent to cash. This means that in the event of loss or device failure, the funds will be irretrievably lost — no recovery procedure is provided.
Privacy and Infrastructure
To ensure transaction privacy, the implementation of cryptographic protocols, particularly Zero-Knowledge Proofs, is planned. This will allow verifying the legitimacy of transactions without disclosing users' personal data. The distribution of the new currency will be handled not only by banks but also by a wide range of financial intermediaries: payment providers, post offices, electronic money issuers, and even regulated virtual asset service providers (VASPs).
Basic services for individuals — wallet opening, fund storage, and access to the payment instrument — will be free. Most commercial enterprises will be required to accept the digital euro, except for micro-businesses that do not deal with digital payments at all.
Limits and Protection of the Banking System
To avoid a massive outflow of deposits from commercial banks into the digital euro, a strict holding limit will be introduced for citizens. The specific amount has not yet been determined — it will be set by the European Commission based on ECB recommendations, with a mandatory review at least once every two years. This mechanism is a classic safeguard against destabilizing the banking sector.
Roadmap: From Tests to Launch
Before the official launch, the ECB must build a full-fledged infrastructure, conduct real pilot tests, and finalize liability rules, especially regarding offline risks (e.g., double spending). After receiving authorization to deploy the system, a minimum of 24 months will be required. According to the regulator's latest estimates, if legislation is adopted in 2026, the first pilot transactions could start as early as mid-2027, with a potential first mass issuance of the digital euro expected no earlier than 2029.
Geopolitical Context and Competition
The launch of the digital euro is not just a technological upgrade but a strategic step to reduce the EU's dependence on external payment systems. The ECB has repeatedly emphasized that nearly two-thirds of all card transactions in the eurozone are processed by non-European companies. In parallel, European banks are developing a private alternative: the regulated euro-stablecoin project Qivalis, which has already attracted 37 banks, including ING, BNP Paribas, and UniCredit. The launch of this asset is planned for the second half of 2026. However, the ECB warns that the mass issuance of private stablecoins could reduce bank lending and complicate control over interest rates.
Analyst's opinion: The committee's decision is a powerful signal to the market. The EU is betting on a sovereign digital currency as a tool for financial dominance. However, the key challenge will remain the balance between user privacy and regulatory requirements. If the ECB manages to implement a truly anonymous offline mode, the digital euro could become a real breakthrough, not just a "digital fiat." Otherwise, it risks remaining a niche product for government transfers.