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Economy — Budget

What Is The Digital Euro And How Will It Work

The report said the digital euro would be an electronic form of central bank money available directly to the public while physical cash remains in circulation.

,   and  TIPP Staff
2 min read
Europe's digital euro: What it is and how it would work. Pic via(@Reuters)

European lawmakers have begun negotiations on legislation governing the digital euro, with the aim of completing the legal framework by the end of the year.

According to the report, the European Central Bank (ECB) could formally approve the digital currency on Jan. 1, 2027, with a public launch expected in 2029 after a pilot program involving about 40 banks and payment companies.

The report said the digital euro would be an electronic form of central bank money available directly to the public while physical cash remains in circulation.

Supporters argue it would reduce Europe's reliance on private payment providers and strengthen the euro area's monetary sovereignty as digital payments become more common.

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According to the report, consumers would be able to use the digital euro free of charge through banking apps or a dedicated application, while retailers would generally be required to accept it.

The proposal also includes limits on individual holdings to protect bank deposits and promises privacy safeguards, including an offline payment option that would not record transaction details.

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tippinsightsTIPP Staff

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