The Council of the European Union has laid out its political rationale for a digital euro, presenting it as a way to safeguard access to public money, strengthen Europe’s monetary sovereignty, and adapt the euro to a rapidly digitalising economy. The position is outlined on the Council’s official policy page as negotiations continue with the European Parliament on the proposed digital euro regulation.
According to the Council, a digital euro would be a digital form of central bank money issued by the European Central Bank for everyday use by citizens and businesses. It would complement cash rather than replace it, ensuring that people continue to have access to risk-free public money even as electronic payments become dominant.
The Council frames the project as a response to structural changes in Europe’s payments landscape. Card payments and online transactions are increasingly dominated by non-European providers, raising concerns about dependence on foreign payment infrastructures. A digital euro, the Council argues, could offer a pan-European payment option that works across borders and reinforces the EU’s open strategic autonomy.
Privacy, Cash, and Offline Use at the Core
A central theme in the Council’s position is privacy. EU finance ministers have repeatedly stressed that a digital euro must offer high levels of privacy, particularly for everyday transactions. While the final design will be shaped by legislation and technical constraints, the Council highlights offline payments as an important feature to make the digital euro more cash-like.
The coexistence with cash is another political red line. The Council links the digital euro file to a parallel legislative proposal on the legal tender status of euro banknotes and coins. Together, the two proposals aim to ensure that physical cash remains widely accepted while digital public money becomes available for those who choose to use it.
Basic use of the digital euro would be free for consumers, according to the Council’s outline. Distribution would rely on supervised intermediaries such as banks and payment service providers, preserving the role of the private sector in customer relationships and compliance.
From ECB Preparation to EU Law
The Council’s page places the digital euro within a clear institutional sequence. After exploratory work and public consultation, the ECB entered a preparation phase in October 2023, focusing on technical design, rulebooks, and testing. However, the ECB will only decide whether to issue a digital euro once EU lawmakers adopt a legal framework.
That framework is now under negotiation. The European Commission proposed the digital euro regulation as part of its Single Currency Package, and the Council, under successive EU presidencies, is working to define member states’ common position. Talks with the European Parliament will determine key elements such as privacy safeguards, holding limits, and the balance between functionality and financial stability.
The Council also highlights the role of the Eurogroup, which brings together finance ministers from the euro area. The Eurogroup has issued several political statements setting out shared objectives, including financial stability, wide acceptance, and the continued availability of cash.
Political Stakes for Europe
The Council’s presentation shows that the digital euro is not only a technical payments project but also a political one. It sits at the intersection of monetary sovereignty, consumer protection, and Europe’s response to private digital money, including stablecoins.
While no launch date is set, the message from the Council is clear. The digital euro is being prepared as a long-term option for Europe, but its future depends on political agreement and public trust. The coming months of legislative negotiations will determine whether that vision translates into a concrete legal and institutional framework.