The European Parliament’s Committee on Economic and Monetary Affairs has approved the digital euro project, marking a significant step in the European Union’s efforts to strengthen financial sovereignty and reduce dependence on U.S.-based payment systems.
According to data from the European Central Bank (ECB), American payment giants Visa and Mastercard process approximately 61% of card payments within the eurozone and nearly all cross-border card transactions.
The digital euro will be an electronic form of central bank money, issued and guaranteed by the European Central Bank. It is designed to complement, rather than replace, cash and existing banking services.
Under the proposal, citizens will be able to hold digital euros in a dedicated electronic wallet. The system will support both online and offline payments, while European authorities emphasize that it will provide a high level of privacy and security for users.
The ECB will be responsible for the technological infrastructure, while commercial banks and payment service providers will deliver services directly to customers.
The approval of the proposal has been described as a major victory for consumers and small businesses, offering a European alternative to dominant international payment networks.
The digital euro is expected to enter circulation by 2029. Negotiations with the EU’s 27 member states are set to begin following a final vote during the European Parliament’s plenary session in July.
Supporters argue that the initiative will strengthen Europe’s strategic autonomy, enhance the resilience of the payment system, and ensure that Europeans continue to have access to a secure public form of digital money in an increasingly cashless economy.
