On Tuesday, the European Parliament openly supported the idea of launching a digital euro for the first time. Lawmakers approved the European Council’s initiative to create a central bank digital currency that will work both online and offline.
Before the vote, two amendments were added to the annual ECB report. These amendments established the parliament’s position on the digital euro.
The first amendment was supported by 420 members of parliament. A total of 158 voted against, and another 64 did not participate in the vote.
The second amendment received even greater support. 438 lawmakers voted in favor, while 158 were again opposed. Another 44 members were absent.
Thus, the parliament effectively signaled political support for the project, which had previously sparked debate within the bloc.
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Parliament’s support is decisive here. Without lawmakers’ consent, the ECB will not be able to launch the digital euro. The 2029 target also depends on how quickly legislators reach a final decision.
The EU’s position has changed significantly in recent times. Previously, the discussion focused on offline functionality. Now, the project is initially designed to work both online and offline. This is a full-fledged tool that Brussels wants to integrate into the payments system.
Lawmakers separately emphasize the practical side. The digital euro should be a convenient way to pay. It should remain a form of government money, just in digital form.
“These votes were an important step forward for the digital euro. A clear majority has formed in parliament in favor of an inclusive digital form of cash backed by the central bank,” said Laura Casonato, Head of Policy at Positive Money Europe.
At the same time, parliament reminds the ECB about the virtual assets market. The shift to digital payments changes the rules of the game, and it is not convenient for everyone. Retail outlets, especially small businesses, may be at risk. Therefore, regulators are being asked to monitor the market more closely.
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There is also a separate political and economic motive. The European Union wants to be less dependent on American payment infrastructure for online transactions. The amendments explicitly state that the digital euro could reduce the fragmentation of retail payments in Europe and make the market more resilient.
This course fits into the EU’s overall strategy. The region has long been seeking ways to reduce dependence on Visa and Mastercard. Christine Lagarde previously said that the digital euro is planned to be built on European infrastructure. The idea is that key payment elements remain within the bloc.
The idea of the digital euro was first introduced in June 2023. But progress has been slow. In some countries, including Germany, the issue depended on the position of national authorities and EU-level coordination. In December, several countries supported the initiative, and after that, pressure on lawmakers increased noticeably.
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Christine Lagarde stated that the European Union needs to supplement cash with the digital euro. According to her, traditional money is becoming less suitable for digital transactions, and its share in everyday payments is gradually declining.
She believes the digital euro could become a universal tool for online payments across the EU. At the same time, the project should ensure a high level of privacy. ECB, she said, will not have access to users’ personal data.
Lagarde emphasized that businesses will also benefit. The digital euro can reduce fees for merchants and simplify the work of European payment providers. This will also expand their opportunities within the single market.
Separately, the head of the ECB called on lawmakers to support the issuance of central bank tokenized money. She believes this is important for creating a unified European digital ecosystem. Its foundation should be a reliable euro asset issued within the EU.
Lagarde also noted that the digital initiative should allow for wholesale settlements based on DLT directly in central bank money. According to her, the Pontes project will present a technical solution in the third quarter of 2026.
In addition, she mentioned the Appia project. Its goal from the very beginning is to build an integrated European virtual asset market.
