The European Parliament approved the start of final negotiations on a digital euro on Wednesday, voting 416 to 169 with 22 abstentions in Strasbourg to advance the bloc's most significant payments initiative in decades.
Negotiators from the Parliament and EU member states aim to finalise the legislation by the end of 2026, with a pilot programme scheduled for mid-2027 and public availability targeted for 2029. The currency, issued directly by the European Central Bank, would operate online and offline and complement, rather than replace, physical cash.
The initiative is designed to reduce European reliance on US payment providers such as Visa and Mastercard. Under the proposed framework, merchants would generally be required to accept the digital euro, with exemptions for the self-employed and micro-enterprises, while basic services including account management would be free for citizens. A holding limit would be imposed to protect financial stability.