The European Parliament has given the green light to the digital euro: a historic step towards a sovereign EU digital currency.
The European Parliament's Committee on Economic and Monetary Affairs has officially approved the digital euro bill. The decision was passed with a margin: 43 votes in favor, 14 against, and one abstention. This is a key step towards the launch of the first pan-European central bank digital currency (CBDC).
The digital euro is not a cryptocurrency, but an electronic form of fiat money issued by the European Central Bank (ECB). A key feature is its hybrid architecture: the asset will operate both online (via traditional accounts) and fully offline — through local storage on the user's device. In offline mode, the digital euro is equivalent to cash: losing the device results in the irreversible loss of funds. This is a deliberate decision to preserve the anonymity of small transactions.
Technology and Accessibility
Zero-knowledge proofs are planned to verify transactions without revealing personal data. Distribution will involve not only banks but also payment providers, post offices, electronic money issuers, and even regulated crypto service providers. Basic services — account opening, storage, and one payment instrument — will be free for citizens. Meanwhile, most companies in the eurozone are required to accept the digital euro; the only exceptions are micro and small enterprises that do not handle other digital payments.
Limits and Protection of the Banking System
To prevent a mass outflow of deposits from commercial banks, a holding limit for citizens will be introduced. The specific amount has not yet been determined — it will be set by the European Commission based on the ECB's recommendation, with a mandatory review at least every two years. This is a reasonable compromise between financial stability and user convenience.
Launch Timeline: Realistic but Ambitious
Before a full launch, the ECB must build the infrastructure, conduct real pilot tests, and resolve liability issues — especially in the offline environment, where there is a risk of double spending. After authorization, at least 24 months will be needed for deployment. According to the ECB's own estimates, if legislation is adopted in 2026, the first pilot transactions could occur from mid-2027, with the first issuance tentatively in 2029.
Strategic Context: Reducing Dependence on Visa and Mastercard
The digital euro is not just a technological experiment but a tool for financial sovereignty. The ECB explicitly states that nearly two-thirds of card transactions in the eurozone are processed by non-European companies. Launching a CBDC will reduce the EU's dependence on external payment infrastructures and preserve the role of public money in the digital economy.
Private Alternative and ECB Position
In parallel, European banks are developing their own regulated euro stablecoin, Qivalis — the number of project participants has already reached 37, including ING, BNP Paribas, and UniCredit. The launch is planned for the second half of 2026. However, the ECB warns that private euro stablecoins could reduce bank lending and complicate control over interest rates. The regulator's position is clear: the digital euro must remain the only fully sovereign digital currency in the region.
Expert Commentary: The approval of the bill is a signal to the market: Europe is serious about entering the CBDC era, without waiting for China or the United States. However, the key challenge remains the same — how to combine privacy, convenience, and financial stability. The decision on offline mode without fund recovery is a bold step that may alienate less tech-savvy users. The success of the digital euro will depend not on technology, but on citizens' trust.