European Parliament Backs Online and Offline Digital Euro

The European Parliament has taken a major step forward in the European Union’s pursuit of a central bank digital currency (CBDC) by giving strong political backing to a digital euro that would work both online and offline — a design aligned with the European Central Bank (ECB) and the European Council’s position. The move, confirmed in a vote by Members of the European Parliament (MEPs), marks a pivotal shift toward approving the legislative framework needed for the introduction of a public digital currency that could one day complement cash and traditional payment systems across the euro area.

By endorsing a version of the digital euro that can be used even without an internet connection, lawmakers have signalled broad support for a flexible, resilient, and inclusive form of digital money. Supporters argue this could strengthen EU monetary sovereignty, reduce dependence on non-European payment providers, and integrate a public digital payment option into everyday commerce — from online shopping to face-to-face transactions. Critics have at times debated design and privacy implications, but this latest vote demonstrates growing consensus among EU institutions to complete the digital euro’s legislative journey ahead of the ECB’s target launch window.

Key Highlights

• Parliamentary backing: EU lawmakers have backed a digital euro that supports both online and offline use.
• Aligns with ECB and Council: The Parliament’s position aligns with the European Council’s negotiating stance and the ECB’s vision.
• Monetary sovereignty: Supporters say the digital euro can strengthen EU monetary autonomy and reduce reliance on foreign payment infrastructures.
• Broad legislative support: A majority of MEPs voted in favour of including both online and offline capabilities, overcoming earlier proposals for offline-only.
• Next steps: The Parliament and Council must now negotiate the final legal framework before the ECB can decide on issuance.

What the Vote Means for the Digital Euro

The European Parliament’s endorsement represents a significant political milestone in the long-running effort to create a digital euro — a state-issued digital currency that would complement physical cash and private digital payment methods. Unlike cryptocurrencies or private digital money, a digital euro would be a public digital form of central bank money backed by the ECB and available to all citizens and businesses.

Importantly, lawmakers confirmed support for both online (internet-enabled) and offline (no internet required) functionality. Offline capability aims to mirror some features of physical cash by enabling transactions even when connectivity is limited — addressing concerns about payment resilience and accessibility in rural or disrupted network scenarios.

MEPs voted to reject a narrower proposal by a parliamentary rapporteur that would have limited the digital euro to offline use only, instead embracing a broader approach similar to the ECB’s preferred design. This development is seen as critical for ensuring that the digital euro can be used seamlessly across all digital commerce and retail environments.

Why It Matters: Monetary Sovereignty and Payment Market Evolution

Reducing Dependence on Non-European Systems

A key driver behind the digital euro initiative is the EU’s desire to maintain monetary sovereignty in an increasingly digital economy. Today, many everyday retail and online payments in Europe are processed through systems operated by non-EU companies such as Visa and Mastercard. Supporters of the digital euro argue that a public digital currency — usable both online and offline — could provide a European alternative that safeguards independence in key payment infrastructure.

Strengthening the Single Market

The digital euro could also help reduce fragmentation within the EU’s payment ecosystem. A unified, interoperable digital currency accepted across the euro area could make cross-border commerce more efficient and lower costs for consumers and businesses. This ties into broader efforts to integrate digital financial services and retail payments across member states.

Inclusivity and Accessibility

By supporting offline capability, the digital euro aims to ensure universal access to digital payments, even in areas with limited internet access or during connectivity outages. This inclusivity could help prevent digital exclusion and ensure that all citizens benefit from the transition to digital forms of money.

Political and Regulatory Context

The digital euro project has been under development since the ECB first proposed it in 2020. Over the past few years, EU institutions including the Commission, Council and Parliament have debated its design, scope and regulatory framework. Final adoption of a legal framework requires agreement among the European Parliament, Council and Commission, after which the ECB can decide whether to formally issue the currency.

While the Parliament’s backing is significant, divisions remain among political groups — particularly around privacy, design details and the role of private banks in distributing the digital euro. Nonetheless, the strong support seen in recent votes suggests a growing consensus toward embedding both online and offline functionality in the digital euro’s core design.

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