European Union governments have taken a major step toward launching a digital euro, agreeing on a shared position that strengthens Europe’s monetary independence and reduces reliance on U.S.-based payment systems and dollar-backed stablecoins.
The digital euro project has been years in the making. The European Central Bank (ECB) first launched the initiative in 2021, followed by a formal proposal from the European Commission in 2023. Since then, EU member states spent more than two years negotiating before finally reaching a common approach.
Danish Economy Minister Stephanie Lose, whose country currently holds the EU Council’s rotating presidency, said the digital euro will help build a stronger and more competitive European payment system. She added that it also supports Europe’s strategic autonomy and economic security.
One key point in the agreement is that the digital euro should be available both online and offline from day one. This matches the ECB’s vision and ensures that people can still make payments during internet outages or emergencies. This decision goes against proposals from some lawmakers who favored an online-only version, assuming private companies would fill any gaps.
The next step now lies with the European Parliament, which must finalize its own position. Once that happens, formal negotiations between the Parliament and the Council can begin.
If everything stays on track and an agreement is reached next year, the ECB could launch a pilot phase in 2027, with a full rollout potentially starting in 2029, according to Bloomberg.
EU officials have made it clear that one major motivation behind the digital euro is reducing dependence on U.S. payment giants like Visa, Mastercard, and PayPal, as well as limiting the growing influence of U.S.-backed stablecoins in Europe.
To protect financial stability, governments emphasized the need for limits on how much digital euro individuals can hold. These limits would be closely coordinated between the ECB and EU governments. The Council also outlined how payment service providers would be compensated, including temporary caps on fees during a five-year transition period, with long-term fees tied to actual operating costs.
Overall, this agreement brings the EU much closer to creating a digital currency that balances innovation, security, and independence, while reinforcing the euro’s role in an increasingly digital global economy.
