European Parliament Requires an Offline Digital Euro First

The European Parliament’s Committee on Economic and Monetary Affairs issued its draft report on the European Commission’s proposal for a regulation on the establishment of the digital euro on 3 November.

The response prioritises the rollout of the offline version before work on the online version is considered. Offline transactions must resemble the anonymity of physical cash. Future work on the online digital euro will proceed only if there is no suitable pan-European private retail payment solution that covers person-to-person, point-of-sale, and e-commerce.

Whether offline or online, upon European Central Bank (ECB) authorisation, there will be a minimum 24-month adaptation phase to allow payment service providers and stakeholders to adjust securely and gradually. This framework aims to avoid crowding out private sector solutions, synchronise technical standards, and ensure interoperability, with clear fee guidelines and user choice, making public sector intervention conditional and proportional to actual market needs.