EU Parliament committee approves digital euro bill, advancing plan for 2029 launch

The European Parliament’s Economic and Monetary Affairs Committee (ECON) has cleared a draft bill to authorize the digital euro, pushing the European Central Bank’s CBDC project one step closer to reality. Bloomberg reported June 23 that the committee voted to allow the ECB to issue a digital euro in both online and offline forms – a key milestone that triggers final negotiations among the Parliament, member-state governments, and the European Commission.

The ECB is targeting a 2029 launch. The digital euro would be legal tender, usable alongside cash, with an offline mode that works without an internet connection. Brussels sees it as a strategic tool to cut Europe’s reliance on US payment networks like Visa and Mastercard, and to counter the spread of dollar-backed stablecoins.

The most contentious issue during the review was whether to roll out the online and offline versions simultaneously. Some lawmakers wanted the bloc to first test private-sector alternatives before releasing the online version. The ECB pushed back, arguing that offering both formats from the start would maximize the digital euro’s utility.

Rapporteur Fernando Navarrete was clear: “The digital euro is not meant to replace cash but to broaden payment options. The rights of citizens who want to keep using cash will remain protected.”

Separately, the ECB plans to spend the next 12 months testing digital euro infrastructure in real-world payment settings through pilot operations. It is also developing a wholesale CBDC for inter-institutional transfers, with a blueprint due in 2028.

What to watch now: the trilogue negotiations between the Parliament, Council, and Commission will finalize the legal text. The ECB’s pilot results, due by mid-2027, will determine whether the 2029 timeline holds. For crypto traders, the digital euro’s offline feature is a design detail worth monitoring – it could reshape how retail payments compete with stablecoins in the EU bloc.