This article was originally published by G. Calder at The Exposé.
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 unmistakable 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.
Digital euro edges closer to official issuance
What the European Parliament Just Voted For
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.
How We Got Here
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 upon 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.
When the Digital Euro Could Be Issued
The ECB’s own published timeline is explicit. It states that the preparation phase ran from November 2023 to October 2025 and that, if lawmakers approve the regulation during 2026, a digital euro could be issued as soon as 2029.
European Central Bank: Progress on the digital euro
The offline component has become politically vital because it is repeatedly positioned as the privacy-preserving feature, allowing certain transactions to occur without the same real-time data exposure associated with fully online payments. It’s widely reported that Parliament’s position is aligning more closely with the Council and ECB on building a digital euro that is usable in both modes.
The Brussels Case for Digital Currency
EU institutions have repeatedly justified the project as a sovereignty and resilience measure, arguing that Europe’s payment rails remain heavily dependent on non-European firms and systems, such as Visa and Mastercard. This is part of the political argument for creating a public digital payment option that can operate in a single market.
ECB communications also frame the digital euro as complementary to cash, not a replacement for it. Apparently, it will strengthen the European payments ecosystem, with an “open acceptance network” that private European initiatives can build upon.
More can be read at the following ECB link: The digital euro: strengthening Europe’s payments ecosystem
Freedom and Privacy: Unanswered Questions
As with elsewhere in the world, institutions continue to emphasise convenience and sovereignty. But digital currencies raise major civil liberties questions. A digital euro is, by design, a centralised payment instrument backed and monitored by the state. Unlike cash, digital payments generate records, metadata, and compliance obligations throughout the chain, and the ultimate decision on how far-reaching the digital euro will be will depend on the final legislative text and technical implementation. Can spending be limited in specific categories? Will donations to specific organisations be restricted? Is there going to be an “expiration date” on funds in order to encourage consumption?
This is why yesterday’s parliamentary signal matters. The legislative file (COM/2023/369) is where the real safeguards, limits, and design constraints will be decided, including the scope of offline functionality, the roles of banks as intermediaries, and the extent to which the system can resemble cash in everyday use.
Final Thought
Supporters of the digital euro will define Tuesday’s vote as a sign that the EU is serious about building a modern payments backbone that is not outsourced to foreign networks. Meanwhile, the ECB openly points to 2029 as a plausible issuance date if legislation succeeds this year. But for most, it’s another reminder that a digital currency is not just about technical ability, but more about our everyday privacy, state oversight, and the boundaries of governmental power.
The key point is that this is no longer a speculative project. The regulation is drafted, the timeline is published, and Parliament is now leaning into the political case for it. Here we see another key step toward the seemingly inevitable implementation of digital money.
Read the full article here
