The European Parliament has backed the launch of the digital euro
A European Parliament committee has backed the creation of the digital euro—a new form of currency to be issued by the European Central Bank. The EU expects this to help reduce dependence on U.S. payment systems and strengthen the bloc’s financial independence. A pilot launch of the project is expected in 2027.
The European Union has taken another important step toward launching the digital euro. The European Parliament’s Committee on Economic and Monetary Affairs has backed a legislative initiative to create the new digital currency.
Forty-three members of the European Parliament voted in favor of the decision. Fourteen committee members voted against it, and one abstained. This refers to a proposal that the European Commission presented back in 2023. The document must now go through the next stages of approval among European institutions and EU member states.
Brussels hopes to conclude all negotiations by the end of this year. If the process goes according to plan, a test launch of the digital euro could take place in the second half of 2027. The European Central Bank is expected to fully launch the new currency in 2029. The digital euro will not mean the end of cash or bank cards. The EU emphasizes that the new system is intended to operate alongside existing payment methods. “The European Central Bank’s digital form of money is intended to complement cash and existing banking services, not to replace them,” the draft states.
According to the plan, users will be able to store digital euros in a special digital wallet. However, there will be certain limits on the maximum amount that can be held there. The system will allow payments to be made both online and offline. The developers also assure that users’ personal data will be protected. “The European Central Bank will not be able to directly identify users based on their payment data,” the document states.
One of the main reasons for creating the digital euro is the EU’s desire to strengthen its financial independence. Today, a significant portion of Europe’s payment market is controlled by American companies. According to the European Central Bank, Visa and Mastercard account for 61% of all card payments in the eurozone. Their share is even higher in international card transactions between countries.
That is why there is growing talk in the EU about the need to create its own digital payment infrastructure that will operate independently of external companies and geopolitical risks. However, discussions surrounding the project are ongoing. Some politicians, particularly among right-wing parties, fear that the digital euro could compromise citizens’ privacy or gradually replace cash payments.
Despite these concerns, support for the project in the European Parliament indicates that the European Union is serious about moving toward launching its own digital currency and adapting its financial system to new technologies. This is reported by Euractiv.
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