The European Parliament’s Economic and Monetary Affairs (ECON) Committee on Tuesday backed
a comprehensive framework for the digital euro, clearing the way for
final legislative negotiations with member states and the European
Commission.

The initiative aims to provide a secure and innovative payment option
for consumers and businesses while strengthening Europe’s strategic
autonomy in payments. The digital euro would be available in both online
and offline forms, with offline transactions designed to function
similarly to cash and supported by strong privacy protections.

Under the proposal, distribution would be handled by banks, payment
providers, e-money institutions and regulated crypto asset firms, with
broad acceptance requirements for merchants.

Consumers would be able to access essential services free of charge,
while fee limits would apply to merchant and inter-provider charges.
Lawmakers also proposed safeguards to protect financial stability,
including limits on individual holdings and restrictions on business
use, while ensuring the digital euro remains non-interest-bearing.

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

Alongside preparations for a retail digital euro, the ECB is also
developing wholesale CBDC infrastructure and plans to begin testing
related settlement solutions in 2026.