The initiative seeks to reduce Europe’s dependence on US-controlled payment networks.
Brussels, June 2026. The European Parliament’s Economic and Monetary Affairs Committee has approved its position on the proposed digital euro. The initiative seeks to strengthen Europe’s financial sovereignty and reduce its dependence on foreign payment infrastructure. Visa and Mastercard currently process approximately 61% of card payments across the eurozone. The two US companies also dominate most cross-border card transactions within the region.
The digital euro would be issued and backed by the European Central Bank as a public form of electronic money. It would complement cash and existing banking services rather than replace them. Consumers would access the currency through a dedicated digital wallet provided by banks or authorised payment companies. European authorities are still discussing the maximum amount each person would be permitted to hold.
The system is expected to support both online and offline transactions across the euro area. Its design would include privacy safeguards intended to prevent the European Central Bank from directly identifying individual users through their payment data. Commercial banks and payment providers would manage customer services while the central bank operated the underlying infrastructure. Supporters argue that the digital euro could provide a secure European alternative to privately controlled payment platforms.
The compensation model for banks and payment providers remains one of the most controversial aspects of the proposal. Financial institutions are expected to receive payment for distributing and managing digital euro services. Merchants could benefit from transaction fees lower than those currently charged by major card networks. European institutions must still resolve these financial questions before the legislation can advance toward final approval.
The proposal would also reinforce the legal status of euro banknotes and coins throughout the European Union. Lawmakers maintain that protecting access to cash and developing a public digital payment option should proceed together. Italian legislator Pasquale Tridico described the committee’s decision as a victory for citizens and small businesses. The European Central Bank also welcomed the parliamentary progress and reiterated its support for the legislative package.
China has already introduced the digital yuan, while Russia plans to expand the use of its digital rouble. The United States has followed a different path by abandoning plans for a Federal Reserve digital currency and supporting privately issued stablecoins. Most international stablecoins are denominated in US dollars, potentially reinforcing the dollar’s influence in global payments. European policymakers view the digital euro as a strategic response to this growing monetary and technological competition.
The European Parliament is expected to formalise its position during a plenary vote in Strasbourg in early July. Negotiations with the European Union’s 27 member states would begin after parliamentary approval. Lawmakers aim to reach a final political agreement before the end of 2026, although technical and privacy issues remain unresolved. The digital euro is currently expected to become operational in 2029 if the legislative and technological process advances as planned.
For Europe, the digital euro represents a decisive step toward greater financial and technological independence.