Digital Euro

Brussels,

Digital Euro

The European Commission has introduced a 'single currency package' comprising two key proposals aimed at ensuring continued access to euro banknotes and coins while also preparing for the potential introduction of a digital euro.

This initiative recognizes the euro's role as a symbol of European unity and the need to adapt to changing payment preferences.

Key Elements of the Proposal

1. Framework for a Digital Euro

The Commission is proposing a legal framework for a possible digital euro, which would serve as a complement to physical cash. This digital euro would offer individuals and businesses an additional option to pay digitally with central bank money, which is intended to be widely accepted, secure, and resilient.

The decision to issue a digital euro will ultimately rest with the European Central Bank, pending the adoption of this legal framework by the European Parliament and Council

2. Continued Access to Physical Euro

The package includes a legislative proposal to safeguard the legal tender status of euro cash, ensuring that euro banknotes and coins remain widely accepted and accessible across the euro area.

This measure responds to the desire of 60% of surveyed individuals who wish to continue using cash, despite the growing trend towards digital payments.

The digital euro is envisioned as a digital form of central bank money that aims to offer consumers and businesses in the EU more options for payment, complementing physical cash, which will remain available.

It plays a significant role in the EU's broader strategy for digital finance and retail payments, contributing to the digital transition by providing a safe, innovative, and accessible means of payment.

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Key Objectives and Benefits of the Digital Euro

Enhancing Payment Options:
- A digital euro would be an electronic means of payment. It would be a digital version of cash, available to the general public and backed by the European Central Bank (ECB) the same way your physical banknotes and coins are. You could use it anywhere that you already use physical euro cash.
- The digital euro would provide an additional choice for consumers and businesses, particularly in situations where physical cash is not practical. It aims to coexist with cash, ensuring that both forms of central bank money are widely accessible.
Supporting the EU's Digital Transition:
- By aligning with the EU’s digital finance and retail payments strategies, the digital euro would support the ongoing digital transformation of the economy. It would promote the development of pan-European and interoperable retail payment solutions, fostering efficiency, innovation, and resilience.
Promoting Financial Inclusion:
- The digital euro could play a crucial role in promoting accessibility and financial inclusion across the euro area. It would ensure that central bank money is tailored to the needs of users, regardless of their digital capabilities, while preserving overall financial stability.
Strengthening the Euro’s International Role:
- The introduction of a digital euro could bolster the euro's position on the global stage, supporting the EU's open strategic autonomy. This would not only enhance the international role of the euro but also contribute to the EU's economic sovereignty.

Legislative process

The digital euro is currently under the ordinary legislative procedure. The Commission proposal is COM(2023) 369 on the establishment of the digital euro (2023/0212(COD)), and it is being examined by the European Parliament and the Council.

1. European Central Bank (ECB) opinion
As required by the Treaties, the ECB adopted its formal opinion on the proposal (31 October 2023).

2. European Parliament – Rapporteur and draft legislative resolution
In the European Parliament, the file is handled by the ECON Committee. The current rapporteur is Fernando Navarrete Rojas (EPP) (who succeeded former rapporteur Stefan Berger).
The rapporteur’s Draft Report includes a Draft European Parliament Legislative Resolution (first reading).

On 19/12/2025, the ECON Committee published the amendements by the Members (MEPs):

Key amendments (ECON) – what’s changing

On 19/12/2025, the ECON Committee published the amendements by the Members (MEPs)

The ECON amendments tabled on the digital euro file cluster around a limited set of policy choices:

Privacy and data protection: stronger “privacy-by-design” language, tighter data minimisation, and clearer safeguards to prevent profiling or unnecessary traceability, especially for offline use.
Offline functionality: more precise framing of what “offline” should mean in practice, often linked to privacy, resilience, and usability in low-connectivity contexts.
Holding limits and stability safeguards: proposals to strengthen the role of holding limits as a core stability tool and to reduce circumvention risks (e.g., across multiple intermediaries/accounts).
Fees and the compensation model: competing approaches on whether/how intermediaries should be compensated and on how charges should be capped or constrained to support wide uptake without undermining market dynamics.
Legal tender, acceptance, and coexistence with cash: clarifications on acceptance obligations and on the relationship between the digital euro and cash, with emphasis on maintaining cash availability and usability.
“Programmability” and conditional payments: stronger wording to exclude “programmable money” features, while allowing conditional payment functionalities under strict safeguards.
Access to devices and technical enablers: measures aimed at avoiding gatekeeper bottlenecks (e.g., access to secure elements / device features) and ensuring fair technical access for digital euro use cases.

Political positioning (high-level)

A minority position includes an explicit motion to reject the proposal.
The majority of amendments broadly follow a “support with safeguards” approach, with differences concentrating on privacy/offline design, holding limits, and the intermediary compensation/fees model.

Amendments packages (ECON):