The digital Euro has cleared another major hurdle after the European Parliament voted strongly in favour of its creation.
The plan, officially endorsed by the parliament’s Economic and Monetary Affairs Committee in June, was approved 416 to 169, with 22 abstentions. The vote was necessitated by a challenge from the right-to-far-right political groups European Conservatives and Reformists, Europe of Sovereign Nations and Patriots for Europe.
The Parliament is now officially in favour of the creation of a digital Euro and the provision of digital Euro services by payment services providers incorporated in member states that do not use the Euro.
The Parliament will now enter negotiations with the Council of the European Union, the other main legislative body in the bloc. The Parliament’s team will be led by Spanish MEP and former chief of staff to the governor of the Bank of Spain Fernando Navarrete Rojas. The first round of negotiations is scheduled to take place “shortly,” the body said.
The position taken by the Parliament supports the creation of a digital Euro as a form of electronic money provided by the European Central Bank (ECB) that works both online and offline. Most businesses within the bloc would be required to accept the currency, with some exceptions applying to the self-employed and small businesses that do not accept other forms of digital payment.
As with conventional current accounts, basic services such as opening an account, holding and managing funds, and accessing at least one payment instrument would be free of charge.
The parliament also made clear that this is not intended to replace physical money, with a clause requiring Euro area countries to keep cash accessible, and businesses being unable to ban cash.
The development of a digital Euro has been a goal of the ECB for years, but it has gained urgency since Donald Trump’s return to the White House last year. In February 2025, ECB member Piero Cipollone told Reuters he hoped the president’s support for US dollar-pegged cryptocurrencies would expedite the bank’s plan.
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