EU Parliament Committee Backs Digital Euro to Curb US Reliance

The European Parliament's Committee on Economic and Monetary Affairs approved a draft negotiating position on June 23, 2026, to advance the creation of a digital euro. In a 43-14 vote in Brussels, lawmakers backed the sovereign electronic payment system designed to reduce the eurozone's reliance on non-EU providers, specifically U.S.-based networks such as Visa, Mastercard, Apple Pay, and Google Pay. The push for strategic autonomy has intensified following tariffs imposed by U.S. President Donald Trump.

The European Central Bank plans to launch a 12-month pilot program in late 2027, with a full rollout targeted for 2029. The digital currency will be non-interest-bearing and accessible via virtual wallets, featuring dual-mode capability for online and offline payments to ensure privacy. To maintain financial stability and prevent deposit outflows from commercial banks, the European Commission will set individual holding limits and a 24-hour holding restriction for businesses.

Commercial banks have raised concerns over implementation costs, with the European Banking Federation estimating expenses at 18 billion euros, significantly higher than the ECB's estimate of 4 billion to 5.8 billion euros. The project now moves toward a plenary vote in July, with final negotiations between the Parliament, the European Commission, and the Council of the European Union expected to conclude by the end of 2026.