The European Parliament has approved the introduction of a digital euro. Starting next week, the Parliament will consult with member states regarding the form of this central bank currency. The European Central Bank intends to introduce its digital counterpart to cash in 2029.
The legislative proposal for the arrival of the digital euro was adopted on Thursday with a majority of 416 votes in favor. 169 MEPs voted against, and 22 abstained.
The next step is the precise implementation of such a digital euro. The European Parliament will consult with EU member states on this matter for the remainder of this year. This involves questions such as how many digital euros citizens may possess and how banks and payment providers will be compensated. It must also be determined where the digital euro must be accepted and what privacy guarantees apply.
If the European Parliament and the EU member states reach an agreement before the end of the year, the European Central Bank intends to launch a pilot as early as next year. The ECB hopes to be able to introduce the currency in 2029.