The digital euro takes a massive step forward after winning a crucial European Parliament vote
EU lawmakers backed a legal framework to launch a state-backed digital currency by 2029 so the continent can stop relying entirely on U.S. credit card and stablecoin giants.
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Summary
- The European Parliament’s Economic and Monetary Affairs Committee approved the legal framework for a digital euro and ordered immediate trilogue talks to finalize the law, ending three years of clashes between central and commercial banks.
- EU officials and ECB President Christine Lagarde say the digital euro is needed to safeguard Europe’s monetary sovereignty and reduce reliance on U.S. dollar–pegged stablecoins and foreign payment giants like Visa and Mastercard.
- The rules pave the way for online and offline versions of the digital euro by 2029, with cash-like privacy for offline payments, strict holding limits to protect banks, and a 12‑month pilot to test the system with selected merchants and payment providers.
