EU Parliament Backs Digital Euro Plans as US Payment Systems are Targeted

The European Union is moving forward with plans to introduce a digital version of the euro, as lawmakers have greenlit negotiations on creating the virtual currency.

The project has been years in the making, and the EU believes it will help reduce its reliance on US payment systems like Visa and Mastercard. A digital euro would provide an alternative to popular services such as Apple Pay and Google Pay.

EU lawmakers have agreed that a legal framework is needed before the virtual currency can be made available for use. Negotiators from the parliament and EU capitals will now start talks to reach a deal by the end of 2026, with the European Central Bank hoping the digital euro would be available to citizens in 2029.

A pilot programme is planned for mid-2027 to test how the digital euro would work in practice. Fernando Navarrete Rojas, one of the lead negotiators, emphasized that the digital euro is an 'alternative, not a requirement' and that there will be 'highest privacy standards'.