Members of the European Parliament have approved a framework for the digital euro, emphasizing the importance of privacy, sovereignty, and financial stability in the new electronic currency.

The Economic and Monetary Affairs Committee of the European Parliament has adopted a pivotal position on the digital euro, securing 43 votes in favor, 14 against, and one abstention. This new form of currency, to be issued by the European Central Bank, aims to provide a secure and private payment method for citizens and businesses, reducing dependence on non-EU payment providers.

Key features of the digital euro include built-in privacy safeguards, utilizing advanced technologies like zero-knowledge proofs to ensure transaction verification without compromising personal data. The ECB will not have access to individual identification details, reinforcing the commitment to user privacy. The digital euro will function both online and offline, with offline transactions resembling cash payments through local storage devices.

To maintain financial stability, the proposal includes limits on individual holdings of the digital euro, with the European Commission responsible for setting these caps based on ECB recommendations. Additionally, businesses will be restricted from holding digital euros beyond a 24-hour period for incoming payments. The initiative also outlines that basic services related to the digital euro will be free, while payment service providers may charge for additional services, ensuring accessibility for all users.