EU Parliament Committee Backs Euro Digital and Clears Path for ECB Talks

Overview

• The European Parliament's ECON committee approved a regulatory position on Tuesday that formally supports the creation of a euro digital and authorizes the ECB to enter negotiations with EU governments and the Commission.
• The ECB plans a 12-month pilot in the second half of next year to test a central-bank‑issued electronic wallet and aims for the euro digital to be available across the euro area by 2029.
• Lawmakers framed the project as a way to strengthen European payment sovereignty because almost two thirds of card payments in the euro area are processed by non‑European firms and dollar stablecoins are expanding.
• Commercial banks have repeatedly warned the euro digital could cause deposit outflows and revenue losses, and at least one MEP group voted against the committee text, leaving the proposal vulnerable to a plenary challenge.
• If no plenary objection appears, trilogue talks are expected to start next month and the pilot will validate how the ECB, banks, fintechs and merchants would distribute and use a central‑bank wallet in everyday payments.