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 framework envisages both online and offline versions of the digital currency, aligning with the ECB’s objective of launching the project before the end of the decade. The central bank said the agreement represents progress toward modernizing the euro while preserving cash as legal tender.

Discussions around the digital euro have intensified due to concerns about Europe’s reliance on US-based payment networks and the rapid expansion of stablecoins linked to the US dollar.

One of the most contentious issues during negotiations was whether the digital euro should initially be limited to offline functionality, but lawmakers ultimately endorsed a dual online-and-offline model.

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.

This is a developing story.