The digital euro has moved from a central bank project to a live legislative negotiation. After years of preparation, the European Parliament, the Council and the Commission are now working through the final text of the regulation that would give the European Central Bank the legal basis to issue a public digital currency for everyday payments.

Where the process stands

On 9 July 2026 the European Parliament adopted its negotiating position by 416 votes to 169, with 22 abstentions. Three-way talks between the institutions began on 13 July, with a second round on 10 September and a third scheduled for 30 September. The stated aim of all three institutions is to finish the legislation by the end of 2026.

The open questions

The negotiations have concentrated on the points that matter most to banks, payment providers and merchants:

• Fees and compensation. How payment service providers are paid for distributing the digital euro, and what merchants can be charged for accepting it. During the talks Italy proposed capping the merchant service charge at €0.02 for payments under €10, and signalled it could accept a zero fee.
• Legal tender status. Whether, and with which exceptions, merchants will be obliged to accept the digital euro.
• Holding limits. How much an individual can hold, a question that directly affects bank deposits.
• Offline payments. How device-to-device payments without a network connection will work, and how private they will be.

Under the draft, the digital euro would be distributed by banks, payment firms and regulated crypto-asset providers rather than by the ECB directly.

The pilot is already taking shape

The ECB is not waiting for the final vote to prepare. It has opened a call for expressions of interest from merchants who want to take part in the digital euro pilot, with a deadline of 27 October 2026. The ECB’s working timeline foresees a pilot in 2027 and a possible first issuance around 2029, provided the legislation is adopted.

What it means for businesses

For merchants and payment providers, the fee model is the detail to watch. A capped or very low merchant charge would make the digital euro one of the cheapest ways to accept a payment in Europe, and would put pressure on the pricing of card and wallet transactions. Businesses that sell across the euro area should follow the outcome of the negotiations on mandatory acceptance, since it will decide whether supporting the digital euro is a choice or an obligation.

Sources: Euronews, Agence Europe, Ecommerce Europe.