EU Parliament Committee Approves Digital Euro Bill, Setting Up 2029 Launch Talks

The European Parliament’s Committee on Economic and Monetary Affairs, or ECON, has taken another step toward establishing a legal framework for a digital euro, advancing the European Central Bank’s central bank digital currency project.

Bloomberg reported on June 23 that ECON approved a draft bill allowing the issuance of a digital euro in both online and offline forms. The decision sets up final negotiations among the European Parliament, member-state governments and the European Commission.

The ECB is targeting the introduction of the digital euro by 2029. It is being designed as legal tender to be used alongside cash, with functionality for online payments and offline use without an internet connection.

The debate reflects the EU’s strategic effort to reduce reliance on US payment networks such as Visa and Mastercard and to respond to the spread of dollar-based stablecoins.

A central issue in the review process was whether to launch the online and offline versions at the same time. Some lawmakers argued that the bloc should first assess private-sector alternatives before introducing the online version. The ECB has insisted that offering both formats together would maximize the digital euro’s effectiveness.

Rapporteur Fernando Navarrete said the digital euro is not meant to replace cash but to broaden payment options. He added that the rights of citizens who want to keep using cash will remain protected.

Separately, the ECB plans to spend the next 12 months testing digital euro infrastructure in real-world payment environments through pilot operations. It is also developing a wholesale CBDC for inter-institutional payments, with a blueprint for that project due in 2028.