Supporters say scheme is crucial to reduce Europe's dependence on US payment providers
The European Parliament has approved its position on the digital euro, paving the way for a potential introduction of a pilot version of the cash-like payment scheme next year.
The Parliament’s economic and monetary affairs committee voted on Tuesday to establish the digital currency, which its supporters argue is critical to reduce Europe’s reliance on US payment systems, particularly Visa and Mastercard. Like physical cash, the digital euro would be issued and backed by the European Central Bank.
The legislative proposal, initially introduced by the European Commission in 2023, received 43 votes in favour, with 14 opposed and one abstention. Lawmakers hope to finalise an agreement with EU member states by the end of this year, before a pilot launch in the second half of 2027 and a full issuance by the ECB in 2029.
“This is a historic day for Europe,” said Aurore Lalucq, a French socialist lawmaker and committee chair, following the vote.
