EU Committee Advances Digital Euro Bill With Privacy Rules
EU lawmakers approved key rules shaping a digital euro, covering offline use, privacy safeguards, holding limits, and a ban on interest payments.
European Union lawmakers moved the digital euro one step closer to reality after a key committee vote advanced legislation governing how the central bank digital currency would function for everyday citizens. The bill sets foundational rules for both offline and online use of the proposed euro-zone digital currency.
Privacy protections emerged as a central pillar of the draft legislation, addressing longstanding public concern that a government-backed digital currency could enable financial surveillance. The committee's approval signals that policymakers are attempting to balance broad adoption with civil liberties guarantees baked directly into the framework.
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The bill also establishes holding limits, capping how much digital euro any individual can store, a measure designed to prevent large-scale flight of deposits away from commercial banks — a risk that central bankers across the globe have flagged as a core challenge in designing retail CBDCs. Notably, the legislation prohibits the digital euro from paying interest, further insulating the traditional banking sector from disintermediation.
The committee vote marks a significant procedural milestone, but the bill must still navigate the full European Parliament and member-state negotiations before becoming law. The European Central Bank has been developing the technical infrastructure for a digital euro in parallel, meaning the legislative and technical tracks are now advancing simultaneously.
The outcome of this process could set a global precedent, as other major economies watch how the EU reconciles monetary innovation with democratic accountability and financial stability. Continue reading at Cointelegraph.
