EU Parliament committee backs digital euro bill, eyes 2029 launch

The European Parliament’s Economic and Monetary Affairs Committee approved the digital euro bill Tuesday with 43 votes in favor, 14 against, and one abstention.forklog
The digital euro would function as an ECB-backed electronic wallet distributed through banks and fintechs, with free basic services and a holding limit for users.reuters
A plenary vote is expected in July, with a 12-month pilot planned for late 2027 and a full rollout targeted for 2029, according to the ECB.reneweuropegroup

EU Parliament Committee Backs Digital Euro, Targeting 2029 Launch

The European Parliament’s Economic and Monetary Affairs Committee on Tuesday approved draft legislation for a digital euro, clearing a major hurdle for the European Central Bank’s plan to launch the currency by 2029 as the bloc moves to reduce its dependence on American payment networks.

A Step Toward Payment Sovereignty

The committee voted 43 in favor, with 14 opposed and one abstention, endorsing a regulatory framework that would allow the ECB to issue a digital form of cash for use by all eurozone residents. The digital euro would function as an electronic wallet, backed by the central bank but distributed through banks and fintech firms, enabling transactions both online and in physical stores.forklog

Reuters reported that the vote came after three years of negotiations between the ECB and commercial banks, which had raised concerns about potential deposit losses and reduced revenues. The Renew Europe group in the Parliament called the vote “a decisive step towards Europe’s financial sovereignty,” framing it against the backdrop of worsening transatlantic relations and Europe’s heavy reliance on Visa and Mastercard for cashless payments.reuters

Contrasting Paths Across the Atlantic

The EU’s embrace of a central bank digital currency stands in stark contrast to the approach taken by the United States. President Trump signed an executive order in January 2025 prohibiting federal agencies from establishing or promoting a CBDC, calling it a threat to financial privacy and stability. Congress later codified that ban in legislation. Instead, the administration championed private-sector stablecoins, signing the GENIUS Act into law in July 2025, which established a federal regulatory framework for dollar-pegged digital tokens issued by private companies.juniperresearch

Next Steps

The committee’s position is expected to be confirmed during a plenary vote in Strasbourg in early July, after which negotiations with EU member states will begin, with hopes to finalize a deal before the end of 2026. The ECB plans to launch a 12-month pilot program in the second half of 2027, with a full rollout anticipated in 2029. Basic services for users, including account opening and payments, would be free of charge, and a holding limit will be imposed to protect financial stability.reneweuropegroup