Negotiations on the digital euro framework aim for final legislation by year-end, enabling ECB approval on January 1, 2027.
The European Parliament, governments, and the European Commission begin negotiations on Monday to finalize rules for a digital euro. The talks aim to pass legislation by the end of 2024, allowing the European Central Bank to formally approve the digital currency on January 1, 2027.
The digital euro would be an electronic version of cash, issued by the ECB, and available directly to the public. It follows a decline in physical cash usage and the rise of cryptocurrencies, including stablecoins. The ECB plans a pilot phase starting next year, involving around 40 banks and payment firms, with a potential launch in 2029.
Supporters argue the digital euro would reduce reliance on U.S. payment firms like Visa and Mastercard, enhancing the euro zone’s monetary sovereignty.