The bill includes holding limits, no interest payments, and mandatory acceptance for businesses, with a potential rollout in over two years.
European Union lawmakers approved a draft bill for a digital euro, incorporating privacy measures like zero-knowledge proofs to verify transactions without exposing personal data. The European Central Bank would not access users’ identification details, according to the proposal.
The legislation sets holding limits for individuals to protect financial stability, with caps determined by the European Commission based on ECB recommendations. The digital euro would not accrue interest, and businesses must accept it, except for very small firms. Offline transactions would remain free, while additional services may incur capped fees.
The ECB must finalize technical rules and conduct pilot tests before a rollout, expected to take at least two years after final approval. Distribution would involve banks, payment providers, and regulated crypto firms.