The European Parliament has formally approved the legislative framework governing the digital euro, clearing the path for the European Central Bank to launch its central bank digital currency by mid-2027.
The framework establishes the digital euro as legal tender across all eurozone member states, while setting strict limits on individual holdings to mitigate risks of bank disintermediation. Maximum individual balances will be capped at €3,000 during the initial phase.
"The digital euro will ensure that public money remains relevant in an increasingly digital economy," said the ECB President. "It will complement cash, not replace it, while providing citizens with a secure, private, and universally accepted digital payment option."
The legislation includes robust privacy protections, requiring that small-value offline transactions remain anonymous while larger digital payments are subject to standard anti-money laundering requirements.
Commercial banks have expressed mixed reactions, with industry bodies calling for adequate compensation mechanisms to offset potential deposit outflows.