EU Committee Approves 2029 Digital Euro Framework as Foreign Firms Handle Two-Thirds of Card Payments
Updated
Updated · CoinDesk · Jun 23
EU Committee Approves 2029 Digital Euro Framework as Foreign Firms Handle Two-Thirds of Card Payments
3 articles · Updated · CoinDesk · Jun 23
Summary
Tuesday’s ECON vote approved the digital euro legal framework and ordered immediate trilogue talks, ending three years of clashes between the ECB and commercial banks.
The push is driven by monetary sovereignty concerns: EU officials say dollar-pegged stablecoins and foreign networks such as Visa and Mastercard leave Europe exposed, with nearly two-thirds of eurozone card payments processed by non-European firms.
By 2029, the rules would allow online and offline digital euros; the offline version is designed for phone-to-phone payments without internet access and with cash-like privacy shielding purchases from ECB visibility.
Banks won strict wallet holding limits to curb deposit flight in a crisis, while the ECB will run a 12-month pilot with selected merchants and payment providers before any launch.
In the race for digital currency dominance, can Europe's public euro outpace America's private stablecoin strategy?
With US firms controlling EU payments, can a digital euro truly reclaim Europe's monetary sovereignty?
Will the digital euro truly protect citizen privacy or create a new era of financial surveillance?
Europe’s Digital Euro: Timeline, Political Hurdles, and the Race for Financial Sovereignty by 2029
Overview
As of June 2026, the digital euro project is at a decisive point in the European Parliament, where upcoming legislative decisions will shape its future. The ECB, confident in eventual parliamentary approval, is preparing a public marketing campaign, a move it had postponed until receiving support from lawmakers. This momentum comes as the ECB stresses the need for a strong legal framework and plans to invite creative ideas and providers to help implement the digital euro. These steps highlight the project's progress and the importance of political consensus and innovation for its successful launch and adoption.