The Council of the European Union has approved a model of digital euro that allows for use both online and offline, issued by the European Central Bank.

The Council of the European Union adopted a negotiating position for the digital euro on Friday, supporting a model that allows the use of the digital currency both online and offline, in contrast to previous proposals from the European Parliament, which focused exclusively on offline functionality. The digital euro is set to be issued by the European Central Bank (ECB) and will be accessible regardless of internet connectivity.

Online transactions will be processed immediately through the ECB's ledger or authorized intermediaries, while offline transactions will be recorded locally and synchronized later. This approach ensures the use of the digital euro in areas with weak connectivity and maintains a level of confidentiality similar to that of cash.

The ECB is working on the digital euro to modernize the payment system and maintain the currency's relevance in the context of the digitalization of the economy. The Council has set limits on holdings of the digital euro to prevent financial risks, and providers will offer basic services for free, with the option to charge fees for additional services. The agreement paves the way for negotiations with the European Parliament, and the digital euro could be operational around 2029, following a planned pilot phase in 2027.