The European Parliament voted in Strasbourg on Thursday, July 9, 2026, to advance the legislative process for the digital euro.
A strong majority supported entering the next phase of negotiations with EU member states to establish the regulatory framework for the central bank digital currency.
Developed by the European Central Bank, the digital euro is designed to function alongside physical cash and serve as a resilient alternative to private American payment giants like Mastercard, Visa, Apple, and Google.
The infrastructure aims to secure European strategic autonomy, lower transaction fees for businesses, and maintain operability during power outages or cyberattacks.
The legislative framework will also govern the deployment of digital euro services across non-eurozone EU members, including Denmark, Hungary, Poland, Romania, the Czech Republic, and Sweden.
Supporters of the initiative emphasized the geopolitical and technical necessity of establishing an independent European payment infrastructure to mitigate vulnerabilities to foreign intervention.
"The urgency for more European control over our payment systems is evident to reduce costs for businesses and protect against foreign interference," said Dirk Gotink, a Member of the European Parliament from the NSC party.
Gotink noted that the digital currency serves as a protective measure against external political risks, specifically referencing instances where foreign leaders could disrupt regional financial systems.
"If Europe truly wants to stand on its own feet, you must have your payment systems in your own hands," stated VVD lawmaker Anouk van Brug, who noted that self-reliance enhances resilience during digital infrastructure failures.
Despite passing the parliamentary hurdle, right-wing factions—including the European Conservatives and Reformists, Patriots for Europe, and Europe of Sovereign Nations—actively opposed the measure, arguing that the market should rely on commercial alternatives.
"Innovation is used as a pretext to concentrate more power, impose new obligations, and create a public infrastructure that undermines competition, privacy, and the financial freedom of Europeans," stated PVV shadow rapporteur Auke Zijlstra, who criticized the proposal's lack of clarity.
Zijlstra expressed additional concern regarding proposed anti-money laundering exemptions aimed at assisting displaced individuals and asylum seekers.
"The ECB may in no way know what you have bought, and you must be able to pass digital euros to another without the ECB knowing about it," Zijlstra added, emphasizing the necessity of strict data protections.
Further pushback came from the BoerBurgerBeweging delegation, which characterized the initiative as an unnecessary government intervention into the financial sector that could undermine private options like the European WERO system.
"I am very pleased that our ECR group has submitted a rejection to stop this disastrous dangerous experiment with people's money," said BBB delegation leader Sander Smit.
Smit cautioned that the current framework positions the central bank dangerously close to holding programmable control over public finances.
"The problem with the digital euro is that we are barely one legislative amendment away from a programmable digital currency under the control of the European Central Bank and the European Commission," Smit stated.
Smit further questioned the fundamental utility of the legislative proposal, arguing it duplicates existing capacities.
"The digital euro is a solution in search of a problem," Smit remarked.
With the parliamentary approval secured, inter-institutional negotiations concerning distribution, privacy parameters, and mandatory acceptance locations will proceed through the end of the year, keeping the European Central Bank on track for its projected 2029 rollout.
