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When will the European Union introduce the digital euro and why is it needed?
๐Ÿ‡ฑ๐Ÿ‡น Lithuania /Technology

When will the European Union introduce the digital euro and why is it needed?

From Delfi · () Lithuanian

Translated from Lithuanian, summarized and contextualized by DistantNews.

At a glance

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  • Claims that the European Parliament has introduced a digital euro as a control measure are false.
  • A digital euro is not yet in effect in the EU, with plans for its introduction around 2029 and a potential pilot project in 2027.
  • The digital euro is intended as a payment system, not a control tool, and will coexist with cash and banking services while protecting user privacy.

False claims circulating on social media suggest the European Parliament has introduced a digital euro designed to track and limit citizens' transactions. However, the digital euro has not yet been implemented in the European Union.

Plans indicate a potential introduction around 2029, with a pilot project possibly launching in 2027. The European Central Bank (ECB) clarifies that the digital euro is conceived as a payment system, not a tool for control. It will complement, rather than replace, physical cash and existing banking services.

Digital euro: MEPs want to ensure sovereignty, privacy and financial stability

โ€” European ParliamentTitle of a press release regarding the digital euro.

Contrary to the misinformation, the digital euro is designed to offer a high level of privacy. The ECB will not be able to directly identify users through their payment data. The system is intended to support both online and offline payments, ensuring accessibility and user confidentiality.

The European Parliament's Committee on Economic and Monetary Affairs did approve the introduction of a digital euro on June 23, but this decision requires final confirmation from the European Council. The ECB's "Preparation phase of a digital euro - Closing report" from 2025 outlines the ongoing development and considerations for its eventual rollout.

Preparation phase of a digital euro - Closing report

โ€” European Central BankTitle of a report detailing the digital euro's preparation phase.
DistantNews Editorial

Originally published by Delfi in Lithuanian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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