European Parliament backs long-awaited digital euro to reduce US dominance in payments
The digital euro is one of the measures put forward to strengthen Europe's strategic autonomy. It would be a digital form of central bank money, issued and backed by the ECB, designed to complement cash and existing banking services rather than replace them.
Under the proposal, consumers would be able to hold digital euros in a dedicated wallet, subject to a holding limit that has yet to be determined.
The system would support both online and offline payments and is intended to offer a high degree of privacy, with the ECB unable to directly identify users from their payment data.
The ECB would provide the underlying infrastructure, while commercial banks and payment service providers would offer digital euro services to customers. Financial institutions are expected to be compensated for their participation in the scheme, while merchants will pay fees that are expected to be lower than those associated with current card transactions.