EU Lawmakers to Vote on Digital Euro Rules

European Union lawmakers will vote Tuesday on rules needed to create a digital euro. The vote marks the next formal step toward a virtual currency that officials say would operate alongside existing cash and bank accounts. The European Central Bank first proposed the digital euro in 2020.

The EU executive later submitted a formal plan, but the currency cannot launch until the European Parliament and member states approve the underlying legal framework.

How the Digital Euro Would Work Users would open an account at a bank or post office and transfer funds into a separate virtual wallet. Payments could be made in stores, online, or between individuals through cards, apps, or phones. The system would include an offline mode and privacy protections that prevent transaction tracking.

Officials have stated that cash and existing private payment methods would remain available.

If lawmakers approve the rules by the end of the year, the European Central Bank plans to begin a pilot program in mid-2027. A full rollout could occur in 2029. An ECB advisor said banks and merchants need time to prepare systems for a smooth, large-scale launch. The digital euro would hold the same value as physical cash and bank deposits.