The European Parliament has voted to advance the digital euro project to formal interinstitutional negotiations on 9 July 2026. The plenary backed the move with 416 votes in favour, 169 against and 22 abstentions, authorising talks with the Council on legislation that would introduce a new, ECB-issued electronic form of money for the euro area.

Under the Parliament's negotiating position, the digital euro would function both online and offline. Privacy safeguards would be embedded in the system, with transactions verified without exposing personal data; personal data would be processed only to the extent strictly necessary for the system to function. Most businesses would be required to accept the digital euro, though exceptions would apply to the self-employed and to small and micro enterprises that do not already accept other forms of digital payment.

Basic services — including opening an account, holding and managing funds, and access to at least one payment instrument — would be provided free of charge. To protect financial stability, a cap would be placed on the amount of digital euros any individual could hold. Banks and payment service providers from non-euro EU member states would be permitted to distribute the digital euro.

The same legislative package also addresses the legal tender status of euro banknotes and coins. Euro area member states would be obliged to keep cash accessible; businesses would be prohibited from refusing cash; and governments would be required to monitor cash availability on a regular basis, with particular attention to vulnerable groups including the elderly, low-income individuals, and those without access to the traditional banking system.

The PfE, ECR and ESN political groups had challenged the Economic and Monetary Affairs Committee's 23 June 2026 decision to open interinstitutional talks, though the plenary vote confirmed the process will proceed. Rapporteur Fernando Navarrete Rojas (EPP, ES) will lead the Parliament's negotiating team. A first round of talks with the Irish Presidency of the Council is scheduled to take place shortly.

The legal tender file was not contested and can also proceed to negotiations under rule 72 of Parliament's rules of procedure.

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