#What developments are taking place with the digital euro?
The Economic and Monetary Affairs Committee of the European Parliament has recently endorsed a detailed framework for the digital euro. This advancement paves the way for final legislative discussions involving member states and the European Commission. The proposed framework includes both online and offline functionalities, targeting a launch before the decade concludes, in line with the European Central Bank's strategic objectives.
Concerns surrounding Europe’s dependency on US payment networks, as well as the increasing prevalence of stablecoins associated with the US dollar, have spurred debates regarding the digital euro’s design. A particularly debated point was whether the currency should focus solely on offline capabilities. However, lawmakers have reached a consensus on implementing a dual model that supports both online transactions and offline access.
In addition to preparing for a retail digital euro, the European Central Bank is also laying the groundwork for wholesale Central Bank Digital Currency infrastructure. This includes plans to initiate testing of relevant settlement mechanisms by 2026.