On Tuesday, members of the European Parliament gave a decisive vote of confidence to the digital euro – an electronic counterpart to the euro banknote that the European Central Bank (ECB) plans to roll out before the decade ends. The move is seen as a key step toward safeguarding the EU’s monetary sovereignty and reducing reliance on foreign payment networks.
During the week‑long session in Strasbourg, parliamentarians adopted two amendments supporting the ECB’s digital‑currency roadmap. One amendment, approved by a wide majority of 438 votes against 158, stressed that a digital euro would "strengthen the Union’s monetary independence, curb payment fragmentation, and bolster the resilience of the single market."
The digital euro would function much like cash: users could pay in stores, online, or peer‑to‑peer without extra fees, while the underlying technology would keep transactions secure and private.
The ECB began exploring a sovereign digital currency in 2020. Its current timeline targets a pilot launch in 2027 and a full‑scale issuance in 2029, provided that European legislators approve the necessary legal framework this year.
Approval will require both the European Parliament and the 27 member states to endorse the legislative package proposed by the European Commission. The European Council has already signaled its support, but formal parliamentary action is expected in the spring.
In a recent briefing, ECB President Christine Lagarde urged euro‑deputies to back the project swiftly, addressing concerns raised by critics. She emphasized that the digital euro will not replace cash, nor will the ECB have access to personal data of users.
According to the ECB, a home‑grown digital currency would reduce Europe’s dependence on U.S.‑based payment giants such as Visa and Mastercard, while preserving the integrity of the continent’s financial infrastructure.
Questions remain about privacy safeguards and the long‑term impact on physical cash. Lagarde reassured that the digital euro will be optional for consumers and designed to coexist with traditional banknotes and coins.