European Parliament ECON committee adopts digital euro position cut reliance US payment providers
The EU just moved a step closer to a digital euro. Parliament's ECON committee adopted its position 43 to 14, backing a central bank digital currency meant to cut Europe's reliance on US payment firms. A plenary vote follows in early July, then talks with the 27 member states.
Europe has taken a concrete step toward issuing a digital euro. The European Parliament's Committee on Economic and Monetary Affairs adopted its negotiating position by 43 votes to 14 with one abstention, backing a central bank digital currency that would be issued and backed by the European Central Bank. Supporters frame the project as a way to reduce the bloc's dependence on US payment providers, while lawmakers stressed that cash would remain protected as a means of payment. The model approved by the committee would let the digital euro work both online, through an account-based system, and offline, using local storage that functions much like physical cash. The next step is a plenary vote expected in Strasbourg in early July, after which the Parliament would open negotiations with the 27 member states. Lawmakers have said they aim to reach a final agreement before the end of the year. Even if a regulation passes in 2026, the timeline remains gradual: pilot activity and initial transactions are slated for mid-2027, with a potential first issuance not expected until 2029. For banks, payment firms and consumers, the vote turns a long-discussed idea into an active legislative process with a clearer path and a defined set of technical choices.