At a meeting in Brussels, this parliamentary committee gave the green light to its negotiating position on the creation of the digital euro, with 43 votes in favour, 14 against, and 1 abstention, within the framework of the so-called single digital currency package, which comprises three legislative initiatives.

"It is a historic day for Europe," said the chair of the European Parliament's Committee on Economic and Monetary Affairs, Aurore Lalucq, after the vote.

Digital Euro

In a released statement, the European Parliament argues that the digital euro should be a "secure, private and free" means of payment, available both online and offline, offering citizens and businesses "a private, secure and innovative way to pay," while reducing the European Union's dependence on external suppliers.

The digital euro is seen as a way to strengthen the EU's financial sovereignty, reducing dependence on international payment networks - such as the American Visa and Mastercard - through a European public alternative for digital payments.

Issuance by the ECB

Regarding its operation, the text provides that the digital euro will be issued by the European Central Bank (ECB) and will operate through an account-based system for online payments, while offline transactions can be carried out directly between local devices without an internet connection.

Privacy protection emerges as a central element of the proposal, with MEPs proposing advanced technologies that enable transactions to be validated without exposing personal data.

Limits on quantity

The European Parliament also proposes limits on the amount of digital euros that each citizen can hold to avoid negative impacts on the banking system and financial stability.

MEPs want these limits to be defined by the European Commission based on recommendations from the ECB and subject to periodic review.

Companies, in turn, will not be able to maintain permanent balances in digital euros, except to accumulate payments received for up to 24 hours.

Practical use

Regarding practical use, most companies will be required to accept payments in digital euros, although exceptions are foreseen for self-employed workers and micro-enterprises that do not accept other digital payment methods.

Basic services associated with the digital euro, including account opening, fund management and provision of payment instruments, should be free for users.

After approval, there is plenary approval by the European Parliament, followed by negotiations with the Member States (in the Council of the European Union), before the final adoption of the legislation.