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New electronic wallet guaranteed by the European Central Bank will allow in-person and digital payments, as the European Union seeks greater financial autonomy.
The digital euro advanced in a decisive stage this Tuesday, June 23, 2026, after receiving support in the European Parliament.
The Committee on Economic and Monetary Affairs approved the regulation project for the new electronic modality of the single currency.
The proposal from the European Central Bank aims to create a payment system accessible to all residents of the eurozone.
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The project also aims to reduce European dependence on networks managed by American companies, such as Visa and Mastercard.
The upcoming negotiations will involve the European Parliament, the governments of the European Union, and the European Commission.
Digital euro will function as an electronic wallet
The digital euro will function as an electronic wallet guaranteed by the European Central Bank, known by the acronym ECB.
Banks and financial technology companies will be responsible for distributing the service to users.
Residents of the eurozone will be able to make in-person and online payments using money issued directly by the central bank.
The system is expected to handle everyday transactions in stores, services, and digital platforms.
The proposal aims to take the European single currency to a new stage of the digital economy.
Citizens will also be able to choose between the digital euro and other available means to make their payments.
Europe seeks to reduce dependence on American companies
The development of the digital euro began approximately six years ago.
The initiative gained greater urgency after Donald Trump’s return to the White House.
New tariffs imposed against trading partners, including the European Union, increased concerns among European authorities.
The American dominance over payment networks started to be seen as a potential tool for political and economic pressure.
Companies like Visa and Mastercard have a strong presence in the infrastructure used for card payments on the continent.
The European Central Bank advocates, in this scenario, the creation of a pan-European payment method.
The new option would allow citizens to conduct transactions with money guaranteed directly by the ECB.
Disputes between the ECB and banks lasted three years
Parliamentary approval came after approximately three years of disagreements between the European Central Bank and banking institutions.
Banks expressed concern about a possible withdrawal of deposits by customers interested in the new modality.
The institutions also fear losing revenue obtained from traditional payment and financial transaction services.
Sector representatives sought to limit the scope of the project during negotiations held in the European Parliament.
The economic committee decided to support the regulatory text despite the concerns presented.
Political resistance could still bring the project to the plenary
The project still faces opposition among some political groups in the European Parliament.
Siegbert Frank Droese, a member of the Europe of Nations and Freedom group, stated that his caucus voted against the proposal.
The opposing stance increases the possibility of a new vote in the institution’s plenary.
An absence of objections will allow parliamentarians to proceed directly to institutional negotiations.
Representatives of the Parliament, European governments, and the European Commission will seek an agreement on the final text.
Final approval could occur by the end of 2026
The schedule foresees the conclusion of negotiations and the final approval of the regulation by the end of 2026.
European representatives will need to align the main technical, financial, and operational points of the proposal.
The legislation will also define responsibilities, conditions of use, and limits for the operation of the digital wallet.
The European Central Bank will be able to proceed with tests only after the regulatory framework is consolidated.
Digital euro pilot project is scheduled for 2027
The European Central Bank plans to start a 12-month pilot project in the second half of 2027.
The experimental phase will allow for the evaluation of the technical and operational functioning of the digital euro.
The disclosed timeline foresees three main stages:
- June 23, 2026: support from the economic committee of the European Parliament;
- Second half of 2027: planned start of the 12-month pilot project;
- 2029: possible full launch of the digital euro.
The definitive launch will depend on the approval of legislation and the results achieved during the tests.
Digital euro could transform payments in Europe
The creation of the digital euro could change the way residents of the eurozone conduct daily transactions.
The new modality could expand the available options and strengthen the financial autonomy of the European Union.
The system will also offer a European alternative to the large international card networks.
Political divergences and concerns from the banking sector will still need to be overcome before the launch.
The final decision will depend on negotiations between parliamentarians, national governments, and representatives of the European Commission.
Will the digital euro be able to reduce the dominance of Visa and Mastercard, or will traditional cards continue to lead payments in Europe? Share your opinion!
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