On Tuesday, February 10th, the European Parliament moved the digital euro one step closer to reality, backing amendments that support a push by the European Central Bank (ECB) for a central bank digital currency intended to work both online and offline. This does not mean the new currency is in place yet, but it’s another unmistakeable signal that the project is gaining momentum after years of discussion.
The digital euro remains framed by EU institutions as a strategic and sovereignty project, designed to reduce reliance on non-European payments infrastructure and to ensure that central bank money remains usable in a digitised economy. However, in line with what we’re seeing around the world, any state-backed digital currency promises to expand financial visibility in ways cash cannot.
On Tuesday, February 10th, European Union lawmakers approved two amendments to an annual report on the ECB. The votes won by a substantial margin, expressing significant backing for an acceleration towards the digital currency initiative.
One of the amendments emphasised that the digital euro is:
“essential to strengthen EU monetary sovereignty, reduce fragmentation in retail payments, and support the integrity and resilience of the single market.”
The vote passed with 438 in favour and 158 against.
The core legal instrument being used to implement the digital euro is not this annual report, but the European Commission’s proposal for a regulation “on the establishment of the digital euro,” first published in June 2023 (COM/2023/369), under the ordinary legislative procedure (2023/0212(COD)). This is the proposal that needs to be agreed between Parliament and the Council to finally create the legal basis for a digital euro.
The European Parliament tracks this publicly via its Legislative Train Schedule, which documents committee work, draft reports, and the broader timeline for adoption.
First proposed by the ECB, the project has been under consideration for approximately six years in total. The EU executive formally introduced this proposal (see above) in June 2023 and EU member states granted preliminary approval in December.
The vote on Tuesday 10th February does not create a law, but signals the current stance of EU lawmakers.