EU Parliament Backs Digital Euro With 43-14 Vote, Embedding Privacy Protections and Holding Limits

The European Parliament's Committee on Economic and Monetary Affairs approved its negotiating position on digital euro legislation in a recent vote, moving the EU closer to launching a central bank digital currency. MEPs voted 43-14 in favour of the proposal, which would establish the digital euro as electronic central bank money that complements rather than replaces cash.

The approved framework includes privacy safeguards using zero-knowledge proofs to verify transactions without revealing unnecessary personal data, with the European Central Bank barred from accessing users' identification information. To protect financial stability, individuals would face holding limits on digital euros, while businesses could only retain incoming payments for up to 24 hours. The proposal also enables distribution through banks, payment firms and regulated crypto-asset service providers across the EU.