CBDC News

Digital Euro Moves Forward Again

First the Digital Euro inched forward when the European Parliament’s (EP) Economic and Monetary Affairs Committee supported the European Central Bank’s (ECB) plans for a digital euro. Then it jumped another hurdle on its route to becoming a financial instrument when the Regulation on the digital euro was approved by the EP.

The next stage is expected to begin by the end of July involving negotiations about the final text of the regulation between the EP, the Council of the European Union and the European Commission. The aim is to complete the legislative process by the end of 2026.

Separately, the ECB has selected 36 payment service providers (PSPs) from across the euro area to run a 12 month digital euro pilot starting in the second half of 2027. The pilot will use a beta version aligned with draft legislation but without legal tender status. It will, therefore, move the digital euro forward toward being ready for issuance but not address policy decisions about legal tender status and a full scale roll out.