The European Parliament committee approved the digital euro bill on June 23. The vote moved the project into formal talks with EU states and the European Commission. Lawmakers want final adoption completed by the end of 2026 after those negotiations.
The draft was supported by the Economic and Monetary Affairs Committee. Its approval removes a major hurdle in the European Parliament for the planned currency of the European Central Bank. The file now goes into trilogue negotiations in Brussels.
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Digital Euro Bill Sets Rules for Access and Wallet Limits
The digital euro bill outlines the operation of the payment instrument in the euro area. It requires both online and offline versions. The offline version aims at providing cash-like privacy.
The proposal would not leave distribution only to the ECB. Access may be offered by banks, payment service providers, and e-money institutions. Regulated crypto asset companies could also participate.
Licensed crypto firms could receive a defined role under the plan. The companies approved by MiCA could be official distribution channels. This may involve their being positioned next to banks in future payment access.
The digital euro bill also proposes caps on individual wallet balances. The specific amounts of these caps have not been made public. The limits are intended to ease pressure on commercial bank deposits.
The digital euro would not offer interest payments. This structure keeps it focused on payments rather than savings. It also helps to minimize the overlaps with the traditional bank deposit products.
ECB Digital Euro Timeline Points to 2027 Pilot
Fernando Navarrete Rojas is leading the proposal in Parliament. He assisted with the draft, pushing it through the committee process. He will stay involved as the file goes into negotiations.
The ECB had started its formal review of the digital euro in 2021. It has since focused on design, privacy, access, and payment functions. The project has yet to be legally approved prior to any launch.
Under the current plan, testing could begin in late 2027. The pilot phase will run for 12 months. If approvals and testing go as scheduled, a broader rollout may be possible in 2029.
The digital euro bill is also a reflection of Europe’s payment dependency. Many eurozone card payments still rely on non-European infrastructure. Officials have pointed to the need for greater payment sovereignty.
Digital Euro Bill May Reshape Public Money Access
Visa and Mastercard are still key players in the regional card payments market. This dependence is perceived as a strategic issue by the EU policymakers. A public digital option may mitigate foreign infrastructure exposure.
The plan could also provide new competition to stablecoin issuers. Central bank currency is a contender to private euro tokens in payments. However, wallet caps may restrict users’ holdings.
The final text will be closely monitored by crypto firms. Their scope of work is subject to licensing, compliance, and negotiations. The digital euro bill could influence regulated access to public money.
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