Digital Euro, EU Council green light for negotiating position

Green light from the EU Council for the negotiating position on the digital euro and the strengthening of the legal tender status of cash. This was announced by the Council. The digital euro will flank cash, with payments also offline, high privacy protection and limits on stocks to avoid risks to financial stability. Ceilings on fees and equal access to technological infrastructures for payment service providers are foreseen. The understanding also clarifies the obligation to accept cash, with targeted exceptions, and introduces resilience plans for electronic payment crises.

The European Central Bank welcomes the fact that the Council has finalised its position on the single currency package, a decisive step towards the introduction of the digital euro and the protection of the legal tender status of euro cash. This is what the ECB said in a statement. "We thank the Danish Council Presidency and the previous Presidencies (Spain, Belgium, Hungary, Poland) for building a consensus among the Member States. The Council's position also responds to the call by euro area leaders in October for rapid legislative progress."

Provided that the Digital Euro Regulation is adopted by the European co-legislators in 2026," the statement continued, "the ECB aims to be ready for a potential first issuance of the digital euro in the course of 2029. "The ECB stands ready to provide technical assistance during the next steps of the legislative process."

In a communiqué, the Council announced earlier in the day that it had agreed its negotiating position on key proposals aimed at strengthening the single currency, "enabling the introduction of a digital euro and better clarifying the legal tender status of euro cash". "These initiatives," reads the council communiqué, "will in turn contribute to improving the strategic autonomy, economic security and resilience of the European Union. The proposals concern two regulations defining the legal framework for the potential issuance of a digital euro, as well as a regulation aimed at protecting the role of cash in the EU, ensuring its wide acceptance and availability".