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Currently, digital payments in Europe are dominated by U.S. providers—but that is set to change. The digital euro has cleared a major hurdle in Brussels with the approval of Members of the European Parliament. (File photo)
Keystone
The digital euro has cleared a major hurdle in Brussels. Members of the European Parliament’s Committee on Economic and Monetary Affairs have spoken out clearly in favor of introducing an electronic form of the single currency.
In a vote held Tuesday in the Committee on Economic and Monetary Affairs, 43 MEPs voted in favor, while 14 voted against. There was one abstention, according to a press release.
The so-called digital euro is intended to complement, but not replace, euro cash. Currently, US providers such as PayPal, Mastercard, and Visa dominate the market for digital payments in Europe. With a digital euro, the eurozone central banks aim to offer a European alternative to these providers.
The payment method is intended to be usable both online and offline and to operate using modern data protection technologies. Basic services such as opening an account and managing balances are to be free of charge. According to the MEPs’ proposal, most companies would be required to accept the digital euro. Exceptions would apply to the self-employed as well as small and micro-enterprises.
MEPs want to ensure that the European Central Bank’s (ECB) role in managing the digital euro remains clearly separate from its monetary policy responsibilities. This is because the ECB would be responsible for introducing a regulatory framework, building the technical infrastructure, conducting practical tests, and addressing liability issues.
The euro-area central banks have been working for years on a digital version of the European single currency and are aiming to introduce this alternative to cash in 2029; a pilot project is scheduled to launch in 2027.
However, the legal framework must be in place for this to happen. The vote in the committee marked another step forward; now the entire Parliament must give the green light to the position with which the lawmakers intend to enter negotiations with the EU member states. The member states had already agreed on a position back in December. Negotiations are set to begin in mid-July.
23.06.2026, 16:26
