European Parliament Approves Digital Euro Mandate as Lagarde Says Cash Will Stay Legal Tender
Updated
Updated · Euronews · Jul 9
European Parliament Approves Digital Euro Mandate as Lagarde Says Cash Will Stay Legal Tender
3 articles · Updated · Euronews · Jul 9
Summary
416 lawmakers backed the European Parliament’s negotiating mandate, reviving the digital euro bill after months of stalled talks and keeping it on track for possible adoption by end-2026.
Christine Lagarde said the digital euro would complement—not replace—cash and would not let the ECB monitor citizens’ payments, answering privacy and surveillance concerns raised by some lawmakers.
Legal-tender status would apply to both cash and the digital euro, Lagarde said, adding the ECB will present new euro banknote design proposals by year-end to show cash “will not go away.”
60% of card payments in Europe run on foreign-owned infrastructure, according to Lagarde, making the project part of a broader EU push to build a home-grown payments system and reduce reliance on mostly US networks.
Is the digital euro Europe's key to monetary freedom, or just a race against China and US tech giants?
Will Europe's digital euro crush fintech innovation by forcing all businesses to accept it for free?
Can a €3,000 holding limit truly protect Europe's banks from a massive deposit flight during a financial crisis?
The Digital Euro in Europe: Strategic Imperatives, Legislative Progress, and the Road to 2029 Implementation
Overview
In July 2026, the European Parliament took a major step by formally approving political discussions with EU Member States to advance the digital euro project. Despite opposition from the Conservatives and Sovereigntists, the majority supported launching interinstitutional negotiations, known as 'trilogues.' This decision marks a crucial advancement, moving the digital euro closer to possible implementation. The broad consensus highlights the EU’s commitment to exploring a digital form of the euro, clearing the way for the next phase of legislative work and setting the stage for future development of Europe’s digital financial landscape.