The Digital Euro is adopted by the European Parliament

The Digital Euro is adopted by the European Parliament - Portugal Business News

Financial News Europe - The Digital Euro is adopted by the European Parliament, according to an announcement published on June 23rd, 2026. Here are all the specifications that apply to the distribution of the Digital Euro:

The establishment of the digital euro was adopted by the European Parliament with 43 votes to 14, with 1 abstention. The final legislation will have to be negotiated with the Council before coming into force.

What is the Digital Euro?

1 - The Digital Euro will be a new, electronic form of money issued by the European Central Bank (ECB) and will work online and offline:

Online payments will be processed through an account-based system, while offline payments will work directly via local storage devices. The offline functionality of the Digital Euro will be equivalent to using physical cash, as losing the device would mean losing the offline money with no refund possible.

2 - Privacy-by-design and privacy-by-default principles will be built into the Digital Euro:

Cutting-edge technologies, such as “zero-knowledge proofs”, will allow transactions to be verified without exposing personal data, which would be processed only to the extent strictly necessary for the system to function. The ECB will not have access to personal identification data.

3 - All payment service providers (PSPs) will distribute the Digital Euro:

All payment service providers (PSPs) will distribute the Digital Euro, including banks, e-money providers, post offices, and regulated crypto-asset providers, will be allowed to distribute the Digital Euro across the EU. Most businesses would be required to accept it. Exceptions would apply to the self-employed, and small and micro enterprises that do not accept other digital payments.

4 - People living outside the Euro area will be able to use the Digital Euro:

Temporary refusals, such as during a power outage, would also be allowed under specific conditions. Visitors, tourists and, in some cases, people living outside the euro area would also be able to use it.

5- Digital Euros services will be free:

Basic services, such as opening a Digital Euro account, holding and managing funds, and getting at least one payment instrument, will be free of charge. PSPs could charge for extra services, with the exception of account maintenance, inactivity penalties or service bundling. Fees for merchant and inter-provider will be capped, while offline payments will be entirely fee-free.

6 - There will be a maximum amount of Digital Euros allowed per person:

To protect the financial system, there will be a cap on how many Digital Euros any individual will be allowed to hold. The EU ceiling should be set by the Commission, based on ECB recommendations, and will be reviewed at least every two years. The Parliament will have full decision-making powers in this process.

7 - Companies will not be allowed to hold Digital Euros:

Businesses will not be allowed to hold Digital Euros, except to accumulate incoming payments for up to 24 hours. Crucially, the digital euro will not earn or cost any interest.

8 - The Digital Euro will be rolled-out within 2 years:

Before the launch, the ECB will finalise a rulebook, build the infrastructure, run real-life pilot tests, and iron out liability rules with particular attention to offline risks, like double-spending. Once authorised, a roll-out period of at least 24 months will follow, giving banks, providers, and users time to prepare.

9 - Banks and Payment Service Providers from non-Euro countries will be allowed to distribute the Digital Euro:

A second file on the provision of Digital Euro services by payment services providers incorporated in member states whose currency is not the Euro, will allow banks and PSPs from non-euro EU countries to distribute the Digital Euro, subject to the same rules, while the ECB will retain the power to restrict access and use. Non-Euro EU member states will also need to appoint a national authority to monitor any impact on their own currency.

10 - Companies will not be allowed to ban cash in the Euro area:

A third file, on the legal tender of Euro banknotes and coins, will oblige Euro area countries to keep cash accessible and to plan for digital payment disruptions. Businesses will not be allowed to ban cash through "no cash" signs or standard contract terms. Member states will also need to check cash availability regularly, with special attention to vulnerable groups, such as the elderly, low-income individuals, and the unbanked.