Overview
- EU governments approved a negotiating position that includes both online and offline payments for a retail digital euro.
- The mandate sets user holding limits to be calibrated by the ECB, with an overall cap reviewed every two years to curb deposit flight risks.
- Basic digital euro services must be offered free to consumers, with value‑added features carrying fees and a five‑year transition cap on merchant and interchange charges.
- The ECB and Council outline a path for a pilot in 2027 and potential operational use by 2029, contingent on final legislation.
- Texts strengthen privacy by enforcing data segregation that central banks cannot override, while banks warn of distribution costs estimated above €5 billion and the ECB flags stablecoin reserve exposures.