European Union moves forward with digital euro legislation

The European Parliament's Committee on Economic and Monetary Affairs (ECON) is set to vote on new legislation regarding the introduction of a digital euro on June 23, 2026. Proposed by the European Central Bank (ECB) in 2020, the digital euro is intended to provide a European alternative to non-EU payment systems like Visa, Mastercard, Apple Pay, and Google Pay. It will be the digital equivalent of physical cash, with an exchange rate pegged at 1:1, and will be optional for consumers to use. The project aims to enhance European monetary sovereignty and reduce reliance on foreign technology. A soft launch is planned for 2029, with full implementation expected by 2030. Transactions will be free of charge, and users will be able to perform offline payments during internet outages or using physical cards for those without smartphones. The legislation ensures that physical cash will remain legal tender and will continue to be issued alongside the digital currency. Citizens will be subject to defined holding limits, and the digital currency is not intended for long-term savings.