The European Parliament supported issuing an online and offline digital euro – breaking with a proposal by the leading lawmaker on the topic to only create the latter.
Legislators on Tuesday approved an amendment arguing for both versions of the digital money — as championed by the European Central Bank. That makes such an outcome likelier to come about ahead of crucial discussions in the Committee on Economic and Monetary Affairs.
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The parliament said in a statement that the digital euro is “essential to strengthening EU monetary sovereignty, reducing fragmentation in retail payments, and supporting the integrity and resilience of the single market.”
“The increasing digitalization of payments, if left exclusively to private and non-EU actors, risks creating new forms of exclusion for both users and merchants,” it said.
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The ECB wants a digital euro to lessen European reliance on US payment firms like Visa and Mastercard as transatlantic ties sour. But it’s still awaiting the necessary legal framework needed to underpin the project, with the European Parliament still finalizing its stance after member states did so in December.
Parliament rapporteur Fernando Navarrete published his report in October, arguing for an offline variant without an online counterpart, unless the private sector fails to devise its own solution.
A vote on his proposal in the ECON committee is expected in early May, with ECB officials led by Executive Board member Piero Cipollone pushing back. He’s said the dual functionalities would complement one another, making the digital currency more akin to cash.
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Provided national governments and the parliament strike a deal next year, the ECB may start a pilot phase in 2027 before a possible launch in 2029.
