European Parliament votes to support the launch of a digital euro with both online and offline capabilities

The European Parliament supports the simultaneous launch of both online and offline forms of digital euro, overturning the previous proposal to only introduce an offline version. This decision aligns with the European Central Bank’s stance, making the dual-function digital euro more likely to be implemented.

The amendment approved by the Parliament on Tuesday lays the foundation for key discussions to be held in the Economic and Monetary Affairs Committee. In line with the previous process, EU member states reached a consensus on the digital euro project in December last year, and this vote by the European Parliament aims to finalize its official position.

In a statement, the European Parliament emphasized that the digital euro is of great importance for maintaining the EU’s monetary sovereignty, reducing reliance on foreign entities in retail payments, and strengthening the unity and autonomy of the single market. The statement further pointed out that if the digital transformation of payment systems is primarily led by non-EU entities, it could pose new systemic risks for European users and merchants.

The European Central Bank’s push for the digital euro aims to reduce dependence on payment companies like Visa and Mastercard. If subsequent legislation proceeds smoothly, the ECB plans to launch pilot programs in 2027 and officially introduce the digital euro in 2029.

Shift in Parliament’s Position

The report released by rapporteur Fernando Naverette in October last year initially recommended only launching an offline version of the digital euro unless users could not independently meet their online payment needs. However, the vote in the Parliament on Tuesday overturned this proposal, instead supporting the ECB’s advocated dual online and offline functionality.

The Economic and Monetary Affairs Committee is expected to vote on the proposal in early May this year. Member of the ECB Executive Board Piero Cipollone has been actively promoting the dual-function version, stating that online and offline features will complement each other, making the use of digital currency more akin to cash.

Monetary Sovereignty Considerations

The ECB’s push for the digital euro aims to reduce reliance on external providers of European payment systems, a goal that has become especially urgent amid tightening transatlantic relations. However, the project still awaits the completion of relevant legislative procedures at the EU level.

The European Parliament emphasizes that the digital euro is a key tool for strengthening EU monetary sovereignty. As payment systems accelerate their digital transformation, the EU must ensure its payment ecosystem is not dominated by non-EU entities, avoiding the emergence of new external dependencies and sovereignty risks in critical financial infrastructure.

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