EU lawmakers have approved a set of rules for a digital euro that would allow both online and offline transactions, include privacy protections, impose holding limits, and pay no interest. The vote by a parliamentary committee moves the bloc closer to launching a central bank digital currency that would sit alongside cash.
Privacy safeguards built in
The legislation tries to address one of the biggest concerns about a digital euro: surveillance. The offline version would offer a level of privacy similar to cash, with transaction data shielded from the central bank and payment providers. For online payments, the rules require that personal data be kept separate from transaction details, and users would have the right to dispute unauthorized charges. That dual approach aims to give people options depending on how much privacy they want.
Holding limits and no interest
To prevent a run on bank deposits, the digital euro would come with a cap on how much each person can hold. The exact limit hasn't been set yet, but lawmakers agreed the currency would not pay interest, making it less attractive as a store of value. That design keeps the digital euro as a payment tool, not an investment vehicle. Banks worried about losing deposits had pushed for strict limits, while consumer groups wanted a high enough cap for daily use.
What comes next
The committee’s approval is a step forward, but the text still needs to be formally adopted by the full European Parliament and then negotiated with EU member states. The rules are part of a broader push to modernize Europe’s payment system and reduce reliance on private companies. Lawmakers are expected to debate the final details in the coming months before the digital euro can become law.
