The creation of a digital euro moved closer to reality after the European Parliament’s Economic and Monetary Affairs Committee approved its position on the digital euro package with a 43-14 vote.
MEP Fernando Navarrete Rojas said the package “protects citizens’ freedom to choose how they pay,” adding that the digital euro would complement cash, never replace it. The European Central Bank is targeting a 2029 launch.
Under the approved draft, the digital euro would function both online and offline. Online payments would use an account-based system, while offline payments would work through local device storage — similar to cash in terms of user control. “The offline functionality would be equivalent to using physical cash, as losing the device would mean losing the offline money with no refund possible,” the announcement read.
The proposal includes privacy-by-design features such as zero-knowledge proofs to verify transactions without exposing personal data. The ECB would not have access to personal identification data. The draft also introduces holding limits to protect financial stability, and the currency would not pay interest. Businesses would only be allowed to hold digital euros temporarily — up to 24 hours — to accumulate incoming payments. They would generally be required to accept the digital euro, with some exceptions.
