Digital Euro is Now in the Final Round of EU Negotiations

European Parliament Unlocks Final Talks on the Digital Euro

The European Parliament has confirmed its negotiating position on the Digital Euro, formally opening the last legislative phase before the electronic currency can become law. @Europarl_EN voted in Strasbourg to establish the legal framework for the currency, which will be issued and backed by the European Central Bank (ECB) to complement, not replace, physical cash.

The plenary vote on July 9 follows a key committee decision taken in late June. Euronews reported that the Parliament's Economic and Monetary Affairs (ECON) Committee had backed the framework on June 23, with the digital euro regulation passing by 43 votes to 14. That committee vote triggered the formal mandate for trilogue negotiations with the Council of the EU, the stage now set in motion by this week's plenary confirmation.

ECB President @Lagarde has been a consistent advocate for the project. In a July 2 interview with Les Échos, she stated that individuals will be able to use the digital euro "at all points of sale, on all e-commerce sites, and even for person-to-person payments, just like euro coins and banknotes," adding that a foreign power would no longer be able to cut off citizens from their means of payment.

Sovereignty and Payment Independence Drive the Push

According to CoinDesk, EU officials and Lagarde argue the digital euro is needed to safeguard Europe's monetary sovereignty and reduce reliance on US dollar-pegged stablecoins and foreign payment networks. Data cited by multiple sources shows that US firms Visa and Mastercard handle around 61% of card payments within the eurozone and nearly all cross-border transactions, a dependence that policymakers regard as a strategic vulnerability.

The approved framework would allow the digital euro to function both online and offline. Offline payments would work through local storage devices in a manner similar to cash, with privacy-by-design protections built in. Strict holding limits would also apply to any individual's digital wallet, a concession to commercial banks concerned about deposit outflows.

Assuming the co-legislators finalise the regulation this year, the ECB has indicated that pilot activity could begin as early as mid-2027, with a potential first issuance of the digital euro targeted for 2029. Trilogue negotiations with EU member states will now determine the final shape of the law, a process that typically runs for several months and involves multiple rounds between Parliament, the Council, and the European Commission.

Sources:
Euronews: European Parliament backs long-awaited digital euro
CoinDesk: EU Parliament approves digital euro framework
ECB: Interview with Christine Lagarde, July 2, 2026