- The core of the Council decision are two regulations: The first sets the legal framework for a potential digital euro.
- The second creates clear definitions of its online and offline versions and is intended to ensure its widespread acceptance.
The aim is to increase the autonomy of the Eurozone and thus the entire EU in payment transactions and to reduce dependence on the competing US providers Visa, Mastercard and PayPal.
Particular emphasis is placed on the need for a digital euro to be usable both online and offline. Both versions are “necessary and essential” and must be available from day one with the first issue, according to the council mandate. In doing so, the Council goes beyond previous Parliament proposals, which focused more on the offline functionality of the digital euro.
With the Council position, the trilogue negotiations with the European Parliament can now begin. This must formulate its own position precisely before the talks can start. If an agreement is reached in 2026, the digital euro could be introduced in 2029 – an ambitious schedule, but one that experts at the ECB and national central banks consider to be realistic.
For consumers and companies, the digital euro would offer an additional, government-guaranteed payment option. According to the council’s decision, cash should continue to be protected and its availability increased.
The crypto industry is watching the project closely: While cryptocurrencies such as Bitcoin and solid altcoins such as Ethereum or Cardano are not directly affected, a digital euro is likely to have a long-term impact on Euro stablecoins and payment service providers.
The EU initiative is intended to make European payment transactions more independent and resilient – it is by no means about displacing private crypto assets.
The Council decision brings the digital euro one step closer, but remains a major political and technical project, the final introduction of which depends on the upcoming negotiations and the decision of the European Central Bank.
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