Overview
- The European Parliament’s economic affairs committee approved opening negotiations on the digital euro on June 23, 2026, ending a period of paralysis in the legislature.
- The European Central Bank says a pilot could start in mid-2027 and issuance could begin in 2029, but both steps require member states and lawmakers to pass enabling legislation.
- The proposed digital euro would be cash‑equivalent, held in a dedicated account at banks or public outlets, usable online or offline, and designed to preserve user privacy for ordinary transactions.
- Banks and the European Banking Federation warn of high costs and the risk of deposit shifts, citing an EBF estimate of about €18 billion while the ECB counters with a €4–5.8 billion estimate and rejects the threat of mass withdrawals.
- The push reflects a drive for European payment sovereignty after repeated dependence on non‑EU payment processors and a high‑profile case where U.S. sanctions left an ICC judge unable to use his Visa card.