EU Parliament approves negotiating position on digital euro

The European Parliament has approved its negotiating position on legislation to create a digital euro, clearing the way for final talks on the European Union's first central bank digital currency. The vote on Thursday, July 9, 2026, saw 416 lawmakers in favor, 169 against, and 22 abstentions, authorizing the start of negotiations with the Council of the European Union and the European Commission.

The proposed digital euro would be a state-backed digital currency issued directly by the European Central Bank and eurozone national central banks, designed as a digital equivalent of cash. Officials stress it is intended to complement, not replace, physical banknotes and coins, which would remain legal tender. Basic services for consumers, such as opening an account, checking balances, and making payments, are expected to be free of charge.

A primary motivation cited for the project is to strengthen the EU's strategic autonomy in payments. Currently, a majority of card payments in Europe rely on infrastructure from U.S.-based companies like Visa and Mastercard. The digital euro would establish a European payment system under public control. A lead negotiator for the parliament,...