The European Parliament's Economic and Monetary Affairs Committee approved the legal framework for a digital euro on June 23, 2026, clearing the last legislative hurdle. The vote mandates immediate trilogue talks to finalize the law, ending three years of disputes between central and commercial banks. The digital euro aims to reduce reliance on U.S. payment giants like Visa, Mastercard, and dollar-pegged stablecoins, safeguarding Europe's monetary sovereignty. ECB President Christine Lagarde supports the move, citing geopolitical necessity. The framework includes both online and offline versions, with offline payments offering cash-like privacy via direct phone-to-phone transfers without internet. Strict holding limits will protect commercial banks from mass withdrawals during crises. The ECB will launch a 12-month pilot with selected merchants and payment providers. The EU vote came hours after the U.S. Senate voted to ban a CBDC for four years, highlighting transatlantic divergence on digital currencies. Markus Ferber, ECON committee member, emphasized resilience in payments as a geopolitical necessity.

Key facts

• EU Parliament committee approved digital euro legal framework on June 23, 2026.
• Digital euro targets 2029 launch with online and offline versions.
• Offline payments allow phone-to-phone transfers without internet, ensuring privacy.
• Strict holding limits protect commercial banks from crisis-driven withdrawals.
• ECB to run 12-month pilot with merchants and payment providers.