Overview
- The European Parliament’s Economic and Monetary Affairs Committee approved its position 43–14 on Tuesday, June 23, 2026, advancing the draft digital euro into trilogue negotiations with the Council and Commission.
- The committee text requires both online and offline payments, privacy‑by‑design using tools such as zero‑knowledge proofs, a ban on interest for digital euro balances, caps on how much individuals can hold, and a layered distribution model that includes banks, payment providers, post offices and regulated crypto firms.
- The ECB aims to publish technical standards in 2026, run a 12‑month pilot starting in mid‑2027, and says public availability could be possible in 2029 if legislators finalise the rules and implementation proceeds as planned.
- Banks and industry warn of heavy adaptation costs and risks to deposits, citing a European Banking Federation estimate of up to €18 billion, while the ECB estimates €4–5.8 billion and points to holding limits and design features as protections against large outflows.
- Negotiators now face choices over precise holding limits, cost and liability sharing, and merchant‑acceptance rules as they try to finish talks by the end of 2026; the drive is framed by data showing about 61% of euro‑area card payments are processed by non‑European firms.