Brussels: On Thursday, the European Parliament backed negotiations with the Council on a proposal for a digital euro that would provide citizens with a secure alternative to non-EU financial service providers. With 416 votes in favor, 169 against, and 22 abstentions, the Parliament agreed to move forward with the legislative process for the digital euro. Additionally, a show of hands approved the involvement of non-euro payment service providers, marking significant progress in the development of the digital currency.
According to Cyprus News Agency, the Economic and Monetary Affairs Committee's decision on June 23, 2026, to open talks on the digital euro and its services faced challenges from the ECR and PfE political groups. Despite this, the Parliament decided to proceed. Rapporteur Fernando Navarrete Rojas (EPP, ES) will spearhead the negotiations on behalf of the Parliament, with the first discussions with the Irish Presidency of the Council set to commence shortly.
The Parliament's negotiating stance highlights that the digital euro would be an electronic currency issued by the European Central Bank, operable both online and offline. Privacy safeguards are a critical component, ensuring that transactions are verified without revealing personal data, which will be processed only as necessary for system functionality.
Key stipulations include a requirement for most businesses to accept the digital euro, though self-employed individuals and small enterprises not using digital payments would be exempt. Basic services related to the digital euro, such as account management and access to payment instruments, would be free. Additionally, there would be a limit on the amount of digital euro an individual could hold to protect the financial system.
The proposal also allows banks and payment service providers from non-euro EU countries to distribute the digital euro. Euro area nations would be required to keep cash accessible, with businesses unable to ban its use. Member states would need to monitor cash availability, paying particular attention to vulnerable groups, including the elderly and those without traditional banking access.