‘On a knife-edge’: ECB’s digital euro initiative heads toward a crucial decision in 2026

Digital Euro Nears Pivotal Decision in 2026

The European Central Bank is advancing one of its most ambitious and debated initiatives: the digital euro. This project is set to face a significant milestone in the first half of 2026, when the European Parliament is anticipated to cast its vote on the proposal.

Progress accelerated in late December after the European Council endorsed the ECB’s vision to introduce a digital form of cash. This new currency would be usable in physical stores, for online purchases, and for direct transfers between individuals. The initiative has gained the backing of EU member states, aiming to strengthen the role of European central banks in managing digital retail payments—a sector currently dominated by American firms.