EU committee approves digital euro legislation

The European Union moved significantly closer to launching a digital euro on Tuesday, June 23, 2026, after a key parliamentary committee approved draft legislation for the central bank digital currency. The vote by the European Parliament's Economic and Monetary Affairs Committee sets the stage for final negotiations, aiming for a public rollout by 2029.

The initiative, first proposed by the European Central Bank in 2020, is designed to reduce the eurozone's reliance on non-European payment processors like Visa and Mastercard. Officials cite that nearly two-thirds of card payments in the euro area are currently handled by such foreign companies. They argue that developing a sovereign digital payment option is a geopolitical necessity to safeguard monetary autonomy.

The approved framework outlines a digital currency that would function alongside physical cash and existing bank accounts. It would be accessible via a separate virtual wallet offered through banks, post offices, or other regulated institutions, including licensed crypto firms. The design includes both online and offline versions, with the offline mode intended to offer cash-like privacy for transactions made directly...