Brussels, June 23, 2026 (Lusa) - The digital euro, the future electronic currency to be issued by the European Central Bank (ECB), is beginning to gain momentum in the European Union, with the first legislative steps underway, and MEPs are ready to negotiate with member states.

Here are some questions and answers about the digital euro:

+++ What is the digital euro? +++

The digital euro is an electronic version of the euro issued by the ECB that functions as public money, with the same value as physical euro banknotes and coins, and can be used for digital payments, both online and in physical shops.

The digital euro does not replace physical cash, but rather serves as an additional alternative to banknotes and coins, offering citizens another payment option whilst keeping cash available as a means of transaction.

+++ What is the European Commission’s proposal? +++

The European Commission presented its legislative proposal for the digital euro in June 2023 as part of the Single Currency Package, which was designed to establish the legal framework enabling the central bank to issue and put the digital euro into circulation.

In addition to the digital version, the Single Currency Package also includes measures to reinforce the legal tender status of cash, stipulating that euro banknotes and coins must, as a rule, be available and accepted as a means of payment for goods, services and the settlement of debts, with limited and duly regulated exceptions.

The European Commission’s proposal forms part of an effort to modernise the payments system and strengthen the European Union’s financial sovereignty, creating a European digital means of payment accessible to all that complements physical cash and reduces dependence on private infrastructure, often controlled by companies outside the EU.

At the same time, the aim is to ensure that competition, innovation and strategic autonomy exist in the financial sector.

+++ Will the digital euro replace electronic payment systems such as Visa or Mastercard? +++

The digital euro will not replace any existing electronic payment systems, but it will function as a European public alternative, reducing the EU’s dependence on international private payment networks.

For the EU institutions, the introduction of the digital euro is necessary to ensure that the euro continues to adapt to citizens’ evolving payment preferences and to strengthen the euro area’s strategic autonomy, particularly in relation to payment technology firms such as Visa and Mastercard.

+++ How does the digital euro work? +++

From a technical perspective, it functions as a payment infrastructure based on digital accounts or tokens, enabling both online and offline transactions and settling in central bank money.

The aim is to provide a secure, interoperable and pan-European digital means of payment, complementary to cash and private payment systems.

In terms of how it would operate, the digital euro would have two main modes: for online payments, it would be used via accounts held with banks or payment service providers, functioning in a similar way to the current digital banking system; whilst for offline payments, it would enable direct transfers between devices, such as mobile phones or cards, without the need for an internet connection.

+++ What the ECB says +++

The ECB considers that the digital euro should be a secure form of public money in the digital age, complementing cash, whilst also championing the protection of privacy, financial stability and European control over the payments' infrastructure, to ensure that personal data is protected.

+++ When might it come into force? +++

No date has been set. Negotiations are now set to begin between the European Parliament (MEPs) and the Council of the European Union (member states) in what are known as ‘trilogues’. Only after final approval by the co-legislators and technical preparation by the ECB can it be launched, which is expected to take several years.

What is certain is that the ECB expects to be in a position to carry out a possible first issuance of the digital euro in 2029, assuming that the necessary legislation is approved in the EU during 2026.

As part of the technical and operational preparations, an ECB pilot project is scheduled to begin in the second half of 2027, lasting 12 months, to test the system and ensure a secure, seamless launch.

The final decision on the issuance of the digital euro will only be taken once the regulation has been approved, with the Eurosystem’s work remaining flexible and adapted to the progress of the legislative process, according to the central bank of the single currency.

+++ What MEPs are saying +++

MEPs on the European Parliament’s Committee on Economic and Monetary Affairs adopted their position on the digital euro on Tuesday€, arguing that it should be a “secure, private and free” means of payment, available both online and offline, providing citizens and businesses with a “secure and innovative” payment method, whilst reducing the European Union’s dependence on external suppliers.

The European Parliament believes that privacy must be safeguarded through technologies that prevent the exposure of personal data during transactions.

MEPs also propose limits on the amount of digital euros each citizen can hold to protect financial stability and the banking system, ensure the system is widely accepted by merchants (with some exceptions), and keep essential services free for users.

Following this position, the next steps are the confirmation of the Parliament’s position in plenary and negotiations with the member states in the Council of the European Union before the final adoption of the legislation.

+++ What the countries are saying +++

In December 2025, the Council of the EU set out its position on clarifying these rules and how they relate to the digital euro, stating that there is consistency between the two forms of currency issued by the central bank.

For the countries, it is urgent to ensure the widespread acceptance of cash throughout the euro area and to guarantee that citizens continue to have access to physical cash, whilst being free to choose their preferred means of payment.

+++ What are trilogues? +++

Following these initial ‘green lights’, the next step is the trilogues – informal negotiations among the European Parliament, the Council of the European Union, and the European Commission – to reach a final agreement on this European legislation before its adoption.

ANE/ADB // ADB.

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