The European Parliament has approved the initiative to promote a digital euro, demonstrating strong political support for a digital currency issued by banking authorities. Its main objective is to operate in both digital environments and traditional transactions.
The European Parliament announced its full support for the launch of the digital euro, positioning it as a strategic tool to strengthen the European Union’s monetary sovereignty and advance the integration of retail payments. The European Central Bank (ECB) publicly welcomed the support, although it reiterated that any formal issuance will depend on the full conclusion of the EU legislative process.
The vote on February 10 explicitly endorsed a design that combines online and offline capabilities. For Parliament and the Council, this dual functionality is essential to preserve in digital format a key characteristic of cash: its universal availability, even offline. However, the resolution does not authorize issuance itself, but rather strengthens political support and rejects attempts to slow down the project’s development.
In its official statement, Parliament stressed that the introduction of the digital euro is “essential to strengthen the EU’s monetary sovereignty, reduce fragmentation in retail payments, and support the integrity and resilience of the single market.” In parallel, the ECB reiterated that the timeline envisions a possible start to the pilot phase in 2027 and, subject to legislative approval and successful technical testing, a full launch around mid-2029.
Parliamentary decision and a possible timeline for the digital Euro
The digital euro was framed as an instrument to reduce dependence on non-European payment infrastructures and large foreign technology providers. From this perspective, the project not only seeks operational efficiency but also aims to limit strategic vulnerabilities in the bloc’s retail payments ecosystem.
A digital central bank liability could modify settlement flows in low-value transactions, reconfigure existing payment infrastructures, and alter the relative demand for private stablecoins. At the same time, commercial bank money would continue to coexist, preserving the current hybrid model.
The timeline depends on final legislative approval and complex technical decisions, especially regarding privacy and offline operability. These design choices will influence costs for merchants, interoperability within the single market, and integration with transaction and custody networks.
Therefore, upcoming parliamentary debates and technical publications from the ECB will be crucial in assessing whether the pilot projected for 2027 is progressing as planned and how it might redefine the digital payments and asset landscape in Europe.
