European Parliament Approves Digital Euro Amendments, Targeting 2029 Issuance

The European Parliament, acting on Tuesday, February 10, 2026, provided substantial political endorsement for the proposed digital euro Central Bank Digital Currency (CBDC) initiative. Lawmakers approved two pivotal amendments to the European Central Bank's (ECB) 2025 annual report, marking the Parliament's first significant affirmative step toward the project's legislative realization. This political backing moves the digital euro closer to a potential first issuance, tentatively scheduled by the ECB for 2029, contingent upon the successful adoption of necessary legislation within 2026.

The approved resolution specifically mandates that the digital euro must incorporate essential offline transactional capabilities, a feature deemed critical for widespread usability across the Eurozone. The vote demonstrated robust cross-party support, with the amendment passing by a margin of 438 votes in favor to 158 against, indicating a strong consensus among European Union lawmakers regarding the project's direction. Furthermore, the Parliament's established position firmly requires that the digital euro maintain strong privacy protections, aiming for standards at least equivalent to those offered by existing private digital payment solutions.

The resolution explicitly reaffirms the guaranteed continuation of physical cash as legal tender, thereby ensuring a dual-currency framework for all citizens and quashing speculation that the digital euro is intended to replace banknotes and coins. This legislative momentum is framed within a broader strategic context aimed at fortifying the European Union's monetary sovereignty against external financial pressures. The push for a digital euro is directly linked to reducing reliance on payment providers denominated in non-European currencies, such as US dollar-linked stablecoins, which have grown in prominence amidst evolving geopolitical dynamics.

Addressing core public apprehension, the Parliament's stance directly tackles concerns regarding financial exclusion and data surveillance. ECB President Christine Lagarde has publicly stated that the central bank will not access personal data concerning digital euro transactions, emphasizing that low-value, offline payments will offer a cash-like level of privacy. However, the framework also dictates that individual holdings of the digital euro will be subject to specified holding limits, a measure intended to safeguard financial stability and prevent the disintermediation of commercial banking sectors.

The project, which began its investigation phase in July 2021 and concluded its two-year preparation phase in October 2025, now requires this political approval as a precursor to the formal legislative drafting and negotiation process. To meet the 2029 target, the timeline necessitates the potential commencement of pilot exercises by mid-2027, pending the finalization of the rulebook currently being negotiated between the Parliament and the European Council. The requirements set forth by the Parliament also place obligations on merchants to accept the digital euro, ensuring universal access to the new payment instrument.

The digital euro is fundamentally distinct from decentralized cryptocurrencies like Bitcoin or standard bank transfers due to its centralized, state-backed nature, offering a sovereign digital liability. The explicit inclusion of offline functionality and the firm commitment to cash continuity directly address the two most significant public and political hurdles facing the CBDC. This vote represents a significant de-risking event, moving the digital euro from a conceptual exercise into a tangible legislative pathway that requires unified rules across the entire euro area.