EU Parliament backs digital euro proposal, moves to negotiations with Council

The committee approved the proposal with 43 votes in favour, 14 against, and 1 abstention, as part of a broader “single currency package” that now moves into negotiations with the Council of the European Union before becoming law.

If issued by the European Central Bank, the digital euro would function as a public digital payment method alongside cash, offering citizens a state-backed electronic alternative for everyday transactions.

Consumer protections and privacy safeguards

Lawmakers said the digital euro is designed to strengthen consumer protection, with proposals for free basic services provided through banks or public institutions, including payment cards and standard access tools.

The Parliament also supported stronger privacy protections and safeguards in case of payment failures. Officials emphasised that the system is intended to complement, not replace, physical cash.

Stronger role for cash retained

Alongside the digital euro proposal, lawmakers backed measures to ensure continued access to cash across the eurozone. Businesses would not be allowed to refuse cash payments through “cashless only” policies, and member states would be required to monitor cash availability and ensure access for vulnerable groups.

A second legislative file would also allow payment providers outside the eurozone to distribute the digital euro under EU rules, while the European Central Bank would retain the authority to regulate access and usage.

Mixed reactions from policymakers and consumer groups

Rapporteur Fernando Navarrete Rojas of the European People’s Party said the package ensures freedom of choice in payments, arguing that “the digital euro will complement cash, never replace it.”

The European Consumer Organisation (BEUC) welcomed the proposal, saying it strengthens consumer protection and ensures both cash and digital payment options remain widely available. It also highlighted the importance of maintaining trust, security, and free access to basic services.

Next step: EU-level negotiations

With the committee vote completed, negotiations between the European Parliament and the Council will determine the final form of the legislation. If adopted, the framework would pave the way for the possible launch of the digital euro by the European Central Bank in the coming years.