European Parliament's ECON committee clears the digital euro legislation, advancing EU payment sovereignty

Executive summary: The European Parliament's Committee on Economic and Monetary Affairs (ECON) voted to approve the digital euro proposal, sending it to the July plenary for final adoption. A retail central bank digital currency would give the EU a sovereign payment tool, potentially reducing reliance on private card networks and enhancing financial autonomy.

Who is involved: European Parliament ECON committee members, European Commission, European Central Bank, and EU member state regulators.

Likely next: Plenary vote in July; if passed, negotiations with the Council will begin, aiming for final legislation before year‑end.

The ECON committee's approval removes the last legislative hurdle for the digital euro, paving the way for a plenary vote in July. This move reflects the EU's push to assert control over retail payments amid growing private digital currencies and foreign stablecoins. If enacted, the digital euro could reshape the eurozone's payment infrastructure and affect bank deposit dynamics.