A political deal, still not a launch
EU member states reached an agreement on the digital euro on 19 December. A digital euro will not arrive anytime soon: the earliest expected introduction is 2029.
Before anything can be implemented, the European Parliament still needs to approve the proposal. After that, the Parliament and EU countries must negotiate a final shared text.
From proposal to regulation
The agreement follows the European Commission’s June 2023 proposal to introduce a digital euro.
The Dutch Ministry of Finance says the Netherlands pushed for three core safeguards:
Strict privacy conditions
No programmability (the digital euro can’t be tied to specific purposes)
Offline use
According to the ministry, these points are now firmly embedded in the draft regulation. The Netherlands also advocated for low costs for retailers.
What the digital euro is, and isn’t
The digital euro would be a digital form of cash, issued by the European Central Bank (ECB). It is intended as an additional way to pay in the future, alongside bank money and physical cash, and use will not be mandatory.
People would be able to open a separate digital-euro account with a bank. Payments could be made via:
A bank app
An ECB app
A dedicated payment card
Online and offline payments
The plan includes two versions:
Online digital euro: privacy comparable to existing digital payments (such as card payments or phone payments).
Offline digital euro: designed to offer more privacy and enable payments without relying on the internet e.g., by holding phones close together. This would allow payments during internet, power, or banking outages.
Acceptance obligation for retailers
Retailers will face an acceptance obligation for the digital euro. In practice: if a retailer currently accepts card payments, they will need to accept digital euro payments in the same way.
The Dutch Ministry of Finance emphasizes that, in the first years, it should not cost Dutch retailers more than similar existing payment methods. Measures are also intended to prevent excessive costs in the longer term.
Not a savings product
EU countries position the digital euro as a payment instrument, not a savings vehicle. That means:
A holding limit (a maximum amount a person can keep in digital euros)
No interest for users, similar to cash
Member states are unanimous that the digital euro (or its underlying technology) must not be programmable, so spending cannot be restricted to specific purposes.
Costs and who pays
For consumers, standard services, such as opening/closing a digital-euro account and paying with the digital euro, will be free.
Building and operating the system does cost money. The ECB will cover part of the payment infrastructure costs, with additional contributions from banks, payment service providers, and retailers. Retailers will be protected from higher fees in the early years; later, once real costs are clearer, tariffs will be adjusted accordingly.
