The European Parliament has given the green light to the digital euro: key details of the new bill
The European Parliament's Committee on Economic and Monetary Affairs has approved the draft law on the introduction of the digital euro. The decision was passed by a sweeping majority: 43 votes in favor, 14 against, and one abstention. This is a landmark step towards creating a fully digital central bank digital currency (CBDC) in the European Union.
How will the digital euro work?
The digital euro is an electronic equivalent of cash, issued by the European Central Bank (ECB). It will operate in two modes: online (via a bank account) and offline (via a local storage on the user's device). The offline mode is equivalent to cash: if you lose your smartphone or card, the funds on them will be irretrievably lost — no recovery option is provided.
To protect transaction privacy, it is planned to use zero-knowledge proof technologies. This will allow transactions to be verified without disclosing the user's personal data. Banks, payment providers, post offices, electronic money issuers, and regulated crypto service providers will be able to distribute the digital euro.
Mandatory acceptance and limits
Most companies in the eurozone will be required to accept the digital euro. An exception is made only for small and micro-enterprises that do not support other digital payments. Basic services for users — account opening, fund storage, management, and access to the payment instrument — will remain free.
To avoid risks to the traditional banking system, a limit 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, with a mandatory review at least once every two years.
Timeline and prospects
Before a full launch, the ECB must build the infrastructure, conduct real pilot tests, and clarify liability rules, especially regarding offline risks (e.g., double spending). After authorization, a minimum of 24 months will be required to deploy the system.
According to ECB estimates, if the legislation is adopted in 2026, the first pilot transactions could begin in mid-2027, and the first issuance of the digital euro is possible no earlier than 2029.
Geopolitical context
The digital euro is intended to reduce the European Union's 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. This makes the project not just technological but also strategic.
In parallel, European banks are developing a private alternative. In May 2025, ING reported that the number of participants in the regulated euro-stablecoin project Qivalis had grown to 37, including giants such as ABN AMRO, Rabobank, BNP Paribas, and UniCredit. The asset's launch is planned for the second half of 2026, subject to obtaining approvals.
However, the ECB has warned about the risks of euro-stablecoins: they could reduce bank lending and complicate control over interest rates.
My analysis: The approval of the draft law is not just a bureaucratic step but a signal to the market that the EU is serious about creating its own digital currency. Interestingly, alongside the state project, the private initiative Qivalis is developing. This creates a unique situation where a CBDC and a regulated stablecoin could coexist within the same jurisdiction. The battle for control over digital payments in Europe is just beginning, and investors should closely monitor developments.