Digital euro set for 2029 launch as cash retains legal status

The European Parliament’s economic and monetary affairs committee has voted to advance legislation for a digital euro, potentially bringing the new payment method to consumers by 2029.

If approved this year, the digital euro would function as an electronic equivalent to cash, usable in payment apps, online stores, and major physical retailers. Merchants would be required to accept it, and no additional fees would apply for consumers.

The digital currency would work both online and offline, including during telecom outages, and would preserve the same privacy and anonymity as cash. It would also reduce reliance on US-based payment systems like Visa and Mastercard, which currently process two-thirds of card payments in the eurozone.

In the same session, MEPs overwhelmingly voted to maintain cash as a valid payment method. Fernando Navarrete, an EPP MEP, stated that the digital euro would complement, not replace, cash, and that no one should be forced to abandon it.