European Parliament Backs Digital Euro as Geopolitical Necessity
The European Parliament's economic committee voted overwhelmingly (43-14) on June 23, 2026, to advance the digital euro, a central bank digital currency (CBDC) aimed at reducing Europe's reliance on US payment providers like Visa and Mastercard. Proposed by the European Commission in 2023, the digital euro will complement cash and is slated for a pilot launch in late 2027, with full issuance by 2029. Supporters view it as a "geopolitical necessity" to enhance European sovereignty. Privacy and cash-replacement concerns were rejected. Final legislative approval and member-state negotiations are expected by end of 2026.
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Digital Euro Framework Approved by European Parliament Committee
The European Parliament's Economic and Monetary Affairs (ECON) committee voted to approve the framework for a digital euro, advancing the European Central Bank's (ECB) plan to launch a central bank digital currency (CBDC) by 2029. The vote ends three years of debate with commercial lenders worried about deposit revenue loss. The committee also mandated immediate negotiations between EU member states and the Parliament to finalize the governing law. ECB Chair Christine Lagarde argued the digital euro is needed to counter U.S. dollar-pegged stablecoins like USDC. The same day, the U.S. Senate voted to ban a U.S. CBDC for four years, citing concerns about competition with bitcoin. Commercial banks in the U.S. lobbied for limits on digital wallet holdings to prevent bank runs. Circle Internet Group's stock has declined 71% over the past year amid these developments.
Yahoo FinanceEuropean Parliament committee votes to advance digital euro as geopolitical necessity against US payment dominance
The European Parliament's economic committee voted on 23 June 2026 to advance the digital euro, framing it as a 'geopolitical necessity' to reduce Europe's reliance on US-dominated payment systems like Visa and Mastercard, which process nearly two-thirds of eurozone card payments. MEPs argued that digital payments should not depend on 'the goodwill of a few foreign providers.' The European Central Bank first proposed the digital euro in 2021 in response to dollar-backed stablecoins. The file now proceeds to a full parliamentary vote and subsequent negotiations with member states. EU economy commissioner Valdis Dombrovskis expressed hope for finalizing the legislative process this year. The move has faced opposition in Germany over fears the digital euro could abolish cash and enable surveillance, claims strongly rejected by ECB President Christine Lagarde. The digital euro is designed for both online and offline use.
EUobserverMEPs back digital euro as ‘geopolitical necessity’ to counter US payment-system dominance
The European Parliament's economic committee voted on June 23, 2026, to advance the digital euro, which MEPs and EU officials describe as a 'geopolitical necessity' to reduce Europe's dependence on US payment providers like Visa and Mastercard. The European Central Bank first proposed the digital euro in 2021, and the European Commission formally proposed it in 2023. The legislation will now go to a full parliamentary vote, after which negotiations with member states will begin. EU economy commissioner Valdis Dombrovskis expressed hope to finalize the legislative process by the end of 2026. German fears that the digital euro would abolish cash or enable surveillance were rejected by ECB President Christine Lagarde.
EUobserverMEPs back digital euro as ‘geopolitical necessity’ to counter US payment-system dominance
The European Parliament's economic committee voted on 23 June 2026 to advance the digital euro, framing it as a geopolitical necessity to reduce Europe's reliance on US-dominated payment systems like Visa and Mastercard, which process nearly two-thirds of eurozone card payments. Markus Ferber, economy spokesperson for the European People's Party, stated that Europe can no longer accept digital payments depending on foreign providers. The digital euro, first proposed by the ECB in 2021, will now go to a full parliamentary vote before negotiations with member states. EU economy commissioner Valdis Dombrovskis expressed hope to finalize the legislative process this year. Concerns from Germany about the digital euro abolishing cash or enabling government surveillance were rejected by ECB president Christine Lagarde.
EUobserverEuropean Parliament Approves Position on Digital Euro, Setting Stage for Pilot Launch
The European Parliament's economic and monetary affairs committee voted 43-14 to approve its position on the digital euro, a cash-like digital currency backed by the European Central Bank. Supporters argue it is critical to reduce Europe's dependence on US payment systems like Visa and Mastercard. Lawmakers aim to finalize an agreement with EU member states by end of 2024, with a pilot launch targeted for the second half of 2027 and full issuance by 2029. The proposal, originally introduced by the European Commission in 2023, faced delays over privacy concerns from far-right groups and technical questions about online/offline versions. The lead negotiator, Fernando Navarrete Rojas, initially supported a scaled-down scheme limited to offline use but changed his position following pushback. Civil society groups praised the text for preserving inclusive access to public money and protecting European sovereignty. ECB President Christine Lagarde called the vote a 'milestone'.
EuractivEuropean Parliament backs digital euro in historic vote
The European Parliament's economic committee voted to approve its position on a digital euro, advancing plans for a pilot version as early as 2027. The proposal, introduced by the European Commission in 2023, aims to reduce Europe's dependence on US payment providers like Visa and Mastercard. The digital euro would be issued and backed by the European Central Bank, serving as a digital complement to physical cash. The vote passed 43-14 with one abstention. Lawmakers aim to finalize an agreement with EU member states by end of this year, with full issuance targeted for 2029. Supporters, including committee chair Aurore Lalucq, hailed it as a historic step. Concerns over privacy and cash replacement were noted, but negotiator Fernando Navarrete Rojas stressed it complements cash. Civil society group Finance Watch praised it for protecting European sovereignty. ECB President Christine Lagarde called the vote a milestone.
EuractivEuropean Parliament Backs Digital Euro in Historic Vote
The European Parliament's economic and monetary affairs committee voted overwhelmingly to approve its position on the digital euro, advancing the European Central Bank-led project toward a pilot launch in the second half of 2027 and full issuance by 2029. The proposal, introduced by the European Commission in 2023, received 43 votes in favor, 14 opposed, and one abstention. Supporters argue the digital euro is crucial to reduce Europe's dependence on US payment providers like Visa and Mastercard. The digital euro would be issued and backed by the ECB, complementing physical cash rather than replacing it. Concerns about privacy and cash replacement, particularly from far-right groups, have delayed progress. The vote also coincided with a committee vote backing the continued acceptability of cash. EU lawmakers aim to finalize an agreement with member states by the end of this year. Christine Lagarde, ECB President, hailed the vote as a milestone. Civil society group Finance Watch praised the text for ensuring inclusive access to public money in a digital payments landscape.
EuractivECB secures key parliamentary backing for digital euro
The European Central Bank (ECB) has secured key parliamentary backing from the European Parliament for the launch of a digital euro. The ECB plans to pilot the digital euro in the second half of 2027. The digital euro will allow all eurozone residents to make payments online and in person. The parliamentary support marks a significant step forward in the development of a central bank digital currency (CBDC) for the euro area, intended to modernize payments and reduce reliance on private digital payment systems. The article was published on June 23, 2026, by The Business Times in Singapore.
The Business Times