Europe is structurally dependent on non-European providers in digital payments. To strengthen the EU's sovereignty in this area, central banks and policymakers are advancing the digital euro project. As early as the end of 2025, the European Central Bank (ECB) presented a concrete concept for the introduction. At the end of June 2026, the European Parliament's Committee on Economic and Monetary Affairs also took a position, so negotiations between Parliament, Commission, and Council (trilogue negotiations) begin in Brussels, moving the legislative process into its final phase. The goal is to introduce the digital euro from 2029.

"True sovereignty only emerges when the digital euro is both actively used and economically sustainable. It should provide clear added value to businesses and consumers; otherwise, it will not gain traction in daily life."

The digital euro is intended to create a sovereign pan-European payment infrastructure as central bank money. From an economic perspective, however, the correct design is crucial: The sovereignty promise is convincing only if the digital euro is genuinely accepted by businesses and citizens and fits seamlessly into the existing payment ecosystem. Accordingly, the use of the digital euro must be low-threshold and economically attractive.

Background: Why the EU wants to act

The ECB has analyzed the structural weaknesses of European payment systems in detail: In two-thirds of eurozone countries, citizens rely solely on international – mostly US-based – providers for card payments. A similar picture emerges in transactions: In the first half of 2024, 66 percent of all card payments in the euro area were already accounted for by international systems. In digital commerce, a pan-European alternative is entirely lacking for much of Europe.

To change this situation, the European Commission presented a legislative proposal in June 2023 to create a legal framework for the digital euro. Since then, the legislative process has been running in the EU Council and European Parliament; in December 2025, the Council established its negotiation position. The European Parliament's Committee on Economic and Monetary Affairs took a position at the end of June 2026. Trilogue negotiations are planned for the second half of 2026. If the regulation is adopted in 2026, a pilot operation could begin in 2027 – and the digital euro could be introduced as early as 2029. The digital euro would be designed as retail CBDC (Central Bank Digital Currency, i.e., digital central bank money for the mass market) and would complement cash as legal tender – explicitly not replace it.

DIHK's Demands

• The digital euro must be simpler, faster, or safer than existing solutions – or offer users options that are currently not possible, such as Europe-wide digital offline payments without additional accounts or fees.
• The offline functionality is seen by businesses as real added value; smart contracts and programmable payments should be available at the launch or delivered quickly thereafter.
• European Central Bank and EU Commission need to communicate comprehensively the concrete benefits for citizens and trade to ensure broad acceptance.
• The digital euro must be compatible with existing hardware and software – especially with point-of-sale terminals, cash register, ERP, and accounting systems.
• The integration into existing systems must be standardized, cost-effective, and require minimal implementation effort.
• Clear regulations on payment finality, liability distribution, fraud prevention, and return processes are essential for trade.
• The holding limit should reflect the cash character of the digital euro and must function practicably in everyday trade. The so-called waterfall/reverse-waterfall solution – offsetting payments above the limit through a linked current account – is indispensable for this.
• The power to set and adjust the holding limit should be delegated to the ECB. This allows for responses to changing market conditions without needing a legislative process every time. Changes to the holding limit should remain exceptions.
• Wallets should primarily be managed by credit institutions. A direct ECB app for end-users is rejected by the banking sector, while real-economy businesses support competition.
• The user interfaces should be compatible and interoperable with the European Digital Identity Wallet (EUDI-Wallet).
• So-called co-badging – providing the digital euro alongside a private card payment on one card – is seen by DIHK as correct since it facilitates wider distribution.
• The costs for retailers must be more attractive or at least comparable to existing payment procedures; otherwise, there is no economic incentive for acceptance.
• Credit institutions must be compensated for their effort on a cost-covering basis – political caps that do not cover actual introduction and operating costs threaten the sustainable provision of the system.
• Low, fixed transaction fees instead of percentage charges are preferred by retailers and companies.
• A cooperative governance structure with genuine co-determination rights – not just for consultation – for real-economy businesses, credit institutions, consumer associations, the technology sector, and civil society is indispensable.
• The Rulebook Development Group (RDG), the expert committee responsible for drafting and continuously developing the rulebook, is a good approach but must be adequately resourced. The perspective of small and medium-sized enterprises must be particularly considered.

Frequently Asked Questions (FAQ)

Why does Europe need a digital euro when there are already many digital payment options?

Digital payments are predominantly controlled by non-European providers. This dependence can pose problems in geopolitical crises. The digital euro aims to create a European-controlled alternative that works across the euro area – even where no pan-European private alternative exists.

What is a holding limit – and why is it important? 

The holding limit determines how many digital euros a user can hold in their wallet. Without this upper limit, citizens could massively shift money from the banking system into the digital euro during a banking crisis – exacerbating a bank run. A realistic holding limit that corresponds to the typical amount in a wallet protects financial stability without impairing everyday utility.

Will my business need new hardware to accept the digital euro? 

This point touches on one of DIHK's central demands: The digital euro must be compatible with existing point-of-sale terminals and cash register and ERP systems. Businesses should not face unnecessary investment or adjustment costs. Whether this compatibility is ensured in practice depends on the specific technical design by the ECB and legislators – DIHK will actively accompany this process.

What distinguishes the digital euro from stablecoins like Tether or Euro-Coin? 

The digital euro is central bank money supported by the institutional framework of the Eurosystem. Stablecoins, on the other hand, are private sector products whose value is linked to specific assets or currencies and are subject to regulatory and operational risks. Stablecoins are, therefore, unsuitable as a substitute for public money – as innovation vehicles, however, they may have a role to play.

Will cash be abolished through the digital euro? 

No. The digital euro is designed as a complement to cash – as a digital twin to banknotes and coins, not as a replacement. Coins and notes will remain and even get a new design after about 25 years.

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