EU Parliament Committee Backs Digital Euro Framework

The European Parliament's Economic and Monetary Affairs (ECON) Committee has taken a major step towards implementing a digital euro, a secure and innovative payment option for consumers and businesses in Europe.

The committee's decision clears the way for final legislative negotiations with member states and the European Commission. The digital euro would be available both online and offline, with offline transactions designed to function similarly to cash and supported by strong privacy protections.

According to the proposal, distribution of the digital euro would be handled by banks, payment providers, e-money institutions, and regulated crypto asset firms, with broad acceptance requirements for merchants. Consumers would have access to essential services free of charge, while fee limits would apply to merchant and inter-provider charges.

The package includes provisions to preserve access to cash and ensure resilience in payment systems. Fernando Navarrete Rojas, the lead negotiator, stated that the objective is to expand payment choice by offering a secure European digital alternative while protecting the continued use of cash.