The year 2024 marked a decisive shift in the digital euro project from technical exploration to political negotiation. After years of research by the European Central Bank (ECB), the European Commission formally introduced a legislative proposal to establish the legal basis for a potential digital euro.
The proposal, unveiled in mid-2024, aimed to guarantee that the digital euro would be a universally accepted and secure form of public money, issued by the ECB and available to all citizens and businesses across the euro area. The draft regulation also sought to ensure that digital euros could be used both online and offline, mirroring the convenience and privacy of cash.
European Commission Executive Vice-President Valdis Dombrovskis described the proposal as “a step toward future-proofing the euro.” He emphasized that the digital euro should strengthen Europe’s financial independence and complement—not replace—physical cash.
Members of the European Parliament (MEPs) quickly engaged in intense debates over key aspects of the proposal. The Parliament’s Committee on Economic and Monetary Affairs (ECON) discussed issues such as privacy protection, limits on individual holdings, and the role of intermediaries in distributing the digital euro.
Privacy again emerged as the central concern. Lawmakers demanded guarantees that the ECB would not have access to citizens’ personal transaction data. “Europeans will only use the digital euro if they can trust it,” said MEP Stéphanie Yon-Courtin, one of the Parliament’s rapporteurs on the file.
The banking sector also lobbied heavily during 2024, urging policymakers to avoid designs that could disrupt deposit bases or lending capacity. The European Banking Federation argued that the digital euro must be implemented gradually, with clear safeguards against financial instability.
Meanwhile, consumer groups and fintech associations supported the initiative, saying a public digital payment option could foster competition and innovation in a market dominated by global card networks and Big Tech platforms.
The legislative proposal outlined that the ECB would remain the issuer, while banks and payment institutions would serve as intermediaries, offering digital euro wallets to customers. The regulation also proposed legal tender status for the digital euro, meaning it would have to be accepted for payments across the euro area.
By late 2024, discussions were still ongoing in Brussels and Strasbourg, with both the Council of the EU and Parliament expected to negotiate final details into 2025. The political process underscored the growing importance of the project not just for central bankers, but for Europe’s democratic institutions.
For the first time, the future of the euro’s digital incarnation was no longer a technical question — it was a matter of European policy.