Digital euro vote - A historic step for money in the digital age Positive Money Europe

Digital euro vote - A historic step for money in the digital age Positive Money Europe

BRUSSELS 23 June - Today, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted with overwhelming majority its position on the digital euro and the mandate for inter-institutional negotiations, setting a milestone for the future of how Europeans can use public money in the form of cash. 

“Today’s vote goes a long way towards giving the people of Europe a digital form of cash that is safe, free and private to use, whilst being available to everyone” said Laura Casonato, Head of Policy at Positive Money Europe. “By securing legal tender, privacy, and protection for the unbanked, we have made sure that public money is fit for the digital era. Beyond this, the digital euro will help to protect European sovereignty by offering a payment system that is both publicly and EU-owned, offering an alternative to Visa and Mastercard.”

Through its approval, ECON has acknowledged that public money must maintain its foundational character in a digital economy rather than being subordinated to private infrastructure. 

“This design makes clear that the digital euro belongs to users and in no way to payment system providers—this is crucial to preserve its substance as public money” stated Laura Casonato.

The newly approved text allows users to choose between online and offline modes of payment, surpassing the limitations of the initial draft put forward by rapporteur Navarrete. EU residents will be able to use their digital euro account in all payment contexts from the very beginning, despite earlier efforts to restrict the online version. Meanwhile, the offline version will use local storage devices to let people make transactions safely without needing an active internet connection.

Privacy has been a major talking point since the first proposal of a European digital form of cash, and the final text delivers strong protections for the rights of residents. 

“We firmly back the principle that our spending data and financial habits must remain completely confidential - noted Laura Casonato - the European Parliament’s position mandates strict privacy-by-design and data minimisation technologies that prevent the European Central Bank (ECB) from identifying digital euro users. Especially for offline payments, private banks are legally banned from processing or holding any personal data beyond the simple acts of funding and defunding the account.”

The text also introduces precise mandates for public distribution. Article 14 addresses financial inclusion by requiring EU Member States to establish at least one public distributor, such as a public post office or a public bank. This ensures that the digital euro is distributed directly to unbanked individuals, vulnerable people, and those with limited digital skills without forcing them to rely on commercial banks. It could also enable financially-sanctioned people (such as UN Special Rapporteur Francesca Albanese) to access a digital payment instrument without depending on the goodwill of private banks.

“The digital euro can only be truly public if everyone can access it through public channels. The European Parliament’s text is a step forward compared with the Council’s position, especially for unbanked and vulnerable people, but it does not go far enough. All users should be free to choose between accessing the digital euro through a bank or through a public entity. That choice would strengthen financial inclusion, improve territorial access, protect consumers, and make the digital euro a real public alternative to private payment solutions “- Casonato explained.

The maximum amount of digital euros that a person can hold, known as a holding limit, has been a major topic of debate. The ECB is set to be responsible for deciding the holding limit, within a range that has a maximum set by the European Commission in coordination with the European Parliament and the Council. 

“We hope that in the long run, this cap will be raised and ultimately, gradually deleted - Casonato urged - To create a true electronic form of cash, the digital euro should act as a reliable store of value too, not just a simple payment method. We will keep monitoring legislative progress, as the landscape is still evolving and there is still room to move in this direction over time.”

“Today, we proved that civil society can successfully stand up to powerful banking lobbies  to lay the foundations for financial freedom -  Casonato concluded - We will continue fighting to ensure that  a hard-won public victory  is not diluted by corporate interests.”

The ECON Committee also adopted the mandate for inter-institutional negotiations, meaning that a vote in plenary won’t be needed, unless specifically requested by MEPs during the July plenary.  The text will move to interinstitutional negotiations between the European Parliament, the Council, and the European Commission. 

### ENDS ###