Digital euro legislation talks begin

Talks between the European Union — European Parliament, European Union — European governments, and the International — European Commission on rules for a digital euro began on July 13, 2026, three years after the legislation was first proposed. The negotiations aim to produce a final law by the end of 2026, paving the way for the European Union — European Central Bank (ECB) to formally approve a digital euro on January 1, 2027. The digital currency would likely be launched in 2029 after a pilot phase involving around 40 banks and payment companies. The digital euro would be an electronic version of cash issued by the ECB, making it the only form of central bank money directly available to the public in digital form. The ECB has pledged to keep cash in circulation indefinitely. Supporters argue that a digital euro would reduce the euro zone's dependence on U.S. payment firms such as Visa, Mastercard, and PayPal, helping protect monetary sovereignty. The ECB has warned that stablecoins could pose risks to financial stability. Consumers would use the digital euro free of charge, and retailers would generally be required to accept it. A holding limit of €3,000 per person has been discussed, and digital euro holdings will not earn interest to protect the traditional banking system. The ECB says it will not see details of users' payments, and an offline mode would allow payments without an internet connection.