DIGITAL CURRENCY GETS FIRST EU APPROVAL –  There will be pilot exercise and initial transactions in mid-2027

The European Parliament gave its first approval to the digital euro. 

The Committee on Economic Affairs voted by a large majority in favour of the first of three measures to introduce an alternative payment system to the Mastercard and Visa networks, with 49 votes in favour, 14 against, and 1 abstention, for the text authorising the creation of a digital euro under the management of the European Central Bank. 

This is the most important measure in a legislative package that also includes rules on the use of the digital euro in third countries and a third piece of legislation on the acceptability of the new version of the single currency in everyday life.

It is now subject to a plenary vote expected in July, but in the meantime, Parliament is pushing for change. 

The main change brought about by the vote is therefore the introduction of a new version of the single currency, which is not only a way to pay in euros using entirely European electronic payment channels but also a new form of cash. 

The money will be loaded onto a card with a chip, and if the card is lost or stolen, the money will be lost. Unlike debit cards, which allow the “return” of funds upon reactivation, the digital euro will not offer such a refund. It is therefore a wallet in its own right, but in a different form.