EU Parliament approves Digital Euro Regulation

The European Parliament has formally approved the Digital Euro Regulation at its first reading, marking a significant step in the strategic evolution of payments across the euro area.

This legislative measure is a foundational component of the broader 'single currency package,' designed to modernize the region's financial infrastructure for the digital age.

The digital euro is conceived as a central bank-issued form of electronic money, intended to provide citizens with an additional, secure payment option.

It will complement traditional cash and the existing array of private payment instruments, ensuring diverse choices for consumers.

A core purpose of this initiative is to preserve public access to central bank money, reinforcing financial stability and trust.

Furthermore, the project aims to strengthen Europe's strategic autonomy and foster innovation within its payments sector, enhancing the region's capacity to lead in digital finance.

This approval underscores a commitment to adapting the euro to contemporary demands while maintaining robust oversight and public confidence in the monetary system.

Following its initial approval, the Digital Euro Regulation will now move to the Trilogue stage, expected to begin by the end of July.

This phase involves negotiations between the European Parliament, the Council of the European Union, and the European Commission to finalize the text.

The institutional objective is to complete the legislative process by the end of 2026.

Concurrently, the Eurosystem is continuing its design and experimentation work.

Banca d'Italia, along with the ECB and other euro-area central banks, is actively involved in the technical preparation.

Both legislative and experimentation activities will proceed in parallel in the coming months, with further developments anticipated on institutional and technical fronts.