EU sets course for digital euro adoption
A new Council mandate sets the legal framework for a digital euro, introducing privacy safeguards, holding limits, and measures to preserve cash access throughout the EU.
The Council of the European Union has agreed on its negotiating position on legislation enabling a digital euro while reinforcing the legal status of euro cash.
An initiative that aims to strengthen the resilience of the EU payments system and support strategic autonomy by ensuring public money remains central in a rapidly digitising economy.
Under the proposal, the digital euro would complement cash, rather than replace it, offering a public payment option backed by the European Central Bank. It would function both online and offline, allow payments with a high degree of privacy, and operate in conjunction with private cards and applications.
Limits on holdings would apply to reduce risks to financial stability, with core services provided free to consumers.
The Council position also clarifies compensation rules for payment service providers and requires fair access to mobile device hardware and software. Interchange and merchant fees would be capped during a transitional period, with future pricing linked to actual operational costs.
At the same time, the Council has moved to strengthen the role of cash by safeguarding acceptance across the € area and guaranteeing access for citizens.
Member states would be required to monitor cash availability and prepare contingency measures for situations where electronic payments are disrupted.
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