Overview
- EU lawmakers, member states and the Commission have started trilogue talks to agree a final law by the end of the year that would let the ECB approve a digital euro and start a staged rollout.
- Key design fights include privacy protections and an offline mode so the ECB cannot see payment details, an individual holding cap discussed around €3,000, and a rule that digital euro balances will not earn interest.
- The draft law would make the digital euro legal tender, require merchants to accept it in many cases, cap fees charged to merchants, and allow consumer access via a dedicated app, bank apps or a payment card for non‑smartphone users.
- A layered distribution model under negotiation would use banks, payment firms, post offices and regulated crypto firms to deliver the currency while banks press for compensation for IT upgrades and handling costs.
- The project responds to falling cash use and growing private stablecoins by aiming to preserve a public store of value and reduce reliance on non‑EU payment rails that the ECB says can threaten bank deposits and financial stability.