The EU Council has agreed its negotiating stance on introducing a digital euro and reinforcing the legal tender status of cash.
EU Council Sets Position on Digital Euro and Cash
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The Council of the European Union announced its position on two key proposals: a regulation to enable the issuance of a digital euro and a regulation to safeguard the role of euro cash across the euro area. The statements were made in Brussels, outlining the Council’s negotiating mandate ahead of talks with the European Parliament.
The measures aim to boost the EU’s strategic autonomy, economic security and payment‑system resilience by offering a public, European Central Bank (ECB)‑backed digital euro alongside cash, while ensuring cash remains widely accepted. “Europe’s strategic autonomy must be strengthened, including in the payments sector,” said Stephanie Lose, Danish Minister for Economic Affairs, emphasizing the importance of a robust digital currency framework. The Council will now enter negotiations with the Parliament, with the ECB expected to decide on issuance after legislative approval.
Read More: ECB Plans Digital Euro Launch by 2029 to Enhance European Strategic Autonomy
🧭 FAQs
• What does the digital euro proposal include? It would be available online or offline, offering private payments backed by the ECB.
• When could the digital euro be launched? The ECB indicates it could be operational by 2029 after approval.
• How will cash acceptance be protected? The proposal seeks to ban non‑acceptance of cash by retailers, with limited exceptions.
• What is the next step for the proposals? The Council will negotiate with the European Parliament to adopt the regulations.
