Digital euro talks cleared by EU lawmakers

EU lawmakers backed starting negotiations on a digital euro, clearing the way for talks between the European Parliament and EU member states on the legal framework for the proposed currency.

The project has been years in the making, but the European Union needs legislation in place before a digital version of the euro can be used.

A European Parliament committee had already approved the plan, but the approval was challenged and sent to a full assembly vote. An overwhelming majority of lawmakers then backed establishing a digital euro.

Negotiators from the parliament and EU capitals can now start talks, with the aim of reaching a deal by the end of 2026. The first meeting is expected this month.

If that schedule is met, the European Central Bank hopes the digital euro would be available to citizens in 2029. A pilot programme is also planned for mid-2027 to test how it would work in practice if there is an agreement by the end of the year.

EU lawmaker Fernando Navarrete Rojas, one of parliament’s lead negotiators, said the digital euro would be “an alternative, not a requirement” and said it would have high privacy standards.