The European Parliament has voted to support both online and offline formats for the planned digital euro, diverging from a previous proposal that favoured an offline-only version.
This move was made as part of its annual assessment of European Central Bank (ECB) policy and recommendations looking ahead to 2026.
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Lawmakers backed an amendment that promotes the ECB’s plan to offer both forms of the digital currency.
According to a statement from the Parliament, introducing the digital euro is “essential to strengthening EU monetary sovereignty, reducing fragmentation in retail payments, and supporting the integrity and resilience of the single market.”
The statement also noted potential risks if payment digitalisation remains dominated by non-European providers: “The increasing digitalisation of payments, if left exclusively to private and non-EU actors, risks creating new forms of exclusion for both users and merchants.”
The project requires a legislative framework before implementation, with EU member states having agreed their position in December, reported Bloomberg.
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By GlobalDataThe Parliament is still determining its final stance.
Fernando Navarrete, who authored the Parliament’s report on the issue last October, supported introducing only an offline option unless private companies are unable to deliver a suitable system.
His proposal is set for a vote in the ECON committee in early May.
ECB Executive Board member Piero Cipollone has responded by saying that having both options would bring the digital euro closer to cash in terms of flexibility.
If lawmakers and national governments reach agreement next year, the ECB could begin testing the digital euro in 2027, followed by a possible launch in 2029.
The discussion takes place amid renewed calls within Europe to reduce dependence on US payment providers including Visa and Mastercard.
Martina Weimert, CEO of the European Payments Initiative (EPI), said Europe’s reliance on international payment solutions is significant and urged urgent action.
According to Weimert, as reported by the Financial Times, “We are highly dependent on international [payment] solutions.”
Policymakers have raised concerns that this reliance could leave the region vulnerable if ties with US firms were to deteriorate.
