The European Parliament wants to start negotiations for the digital euro, but demands guarantees for cash and private life.
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The European Parliament voted to start negotiations with the Council regarding the digital euro, a new electronic form of money issued by the European Central Bank, which is expected to function online and offline. The Parliament's position calls for privacy protection, free basic services, a cap on the amount of digital euros a person can hold, and the obligation of eurozone countries to maintain access to cash.
The European Parliament has approved the start of negotiations with the Council regarding the creation of the digital euro, an electronic form of money issued by the European Central Bank. The vote opens the stage for interinstitutional negotiations, in which the Parliament and member states will try to establish the final form of the project.
In short
The European Parliament has approved the start of negotiations regarding the digital euro.
The vote for the creation of the digital euro was 416 in favor, 169 against, and 22 abstentions.
The digital euro is expected to function online and offline.
The Parliament calls for privacy protection and data processing only to the extent strictly necessary.
Countries in the eurozone should maintain access to cash, and businesses should not be able to prohibit cash payments.
The digital euro would be a new form of public money, issued by the European Central Bank, but used electronically. Unlike money held in a commercial bank account or in a private payment app, the digital euro would be a digital form of currency issued by the central bank.
The Parliament presents the project as a way to reduce dependence on payment providers outside the European Union. Currently, a significant part of electronic payments depends on schemes, infrastructures, and international companies. The digital euro could provide citizens and businesses with a European payment option, supported by the ECB.
The plenary approved the mandate for negotiations with 416 votes in favor, 169 against, and 22 abstentions. A second file, regarding the provision of services in digital euros by payment service providers from member states that do not have the euro as their currency, was approved by a show of hands.
The decision comes after the ECR and PfE groups challenged the decisions of the Committee on Economic and Monetary Affairs from June 23, 2026, to start negotiations. The plenary confirmed the mandate, and the rapporteur Fernando Navarrete Rojas, a PPE MEP from Spain, will lead the Parliament's negotiating team.
A third file from the same package regarding the single currency, concerning the status of banknotes and coins in euros as legal means of payment, was not contested. Negotiations can also begin on this file.
The Parliament's position requires that the digital euro can be used both online and offline. Offline functionality is important for situations where users do not have an internet connection, for the resilience of the payment system, and for the proximity to how cash operates.
Privacy protection is one of the central conditions. The Parliament demands that transactions be verified without exposing personal data, and that data be processed only to the extent strictly necessary for the functioning of the system. This guarantee is important for public acceptance of the project, as the digital euro would create a payment infrastructure used by millions of people.
Basic services should be free. Opening an account, holding and managing funds, and access to at least one payment instrument should not cost users. The idea is for the digital euro to be accessible as a basic payment instrument, not just as a financial service for individuals already well integrated into the banking system.
The majority of businesses should accept the digital euro. Exceptions would be made for independent workers and small and micro-enterprises that do not accept other digital payments. This formulation seeks to avoid imposing disproportionate obligations on the smallest economic operators.
The Parliament also calls for a cap on the amount of digital euros a person can hold. The goal is to protect financial stability and avoid a massive shift of deposits from commercial banks to central bank digital money.
Banks and payment service providers from EU member states that are not part of the eurozone could distribute the digital euro. This provision matters for citizens and businesses outside the eurozone that use payment services related to the single currency or have economic relations with the eurozone.
The Parliament insists that the digital euro must not replace cash. Eurozone countries should be required to maintain access to cash, businesses should not be able to prohibit cash, and member states should regularly monitor its availability.
Access to cash must be especially monitored for vulnerable groups, such as the elderly, low-income individuals, and people without access to the traditional banking system. For these groups, cash remains essential in daily life, and the transition to digital payments can create exclusion if not accompanied by guarantees.
The first round of negotiations with the Irish presidency of the Council is scheduled to take place soon. The final form of the digital euro will depend on the agreement between the Parliament and member states.
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