Author：Wall Street CN

The European Parliament supports the simultaneous launch of a digital euro in both online and offline formats, overturning a previous proposal to launch only an offline version. This decision aligns with the European Central Bank's position.This makes it more likely that a digital euro with dual functions will be implemented.

The amendments passed by Parliament on Tuesday lay the groundwork for crucial discussions to come in the Committee on Economic and Monetary Affairs. Echoing previous progress, EU member states reached a consensus on the digital euro project last December, and this vote in the European Parliament aims to finalize its formal position.

The European Parliament emphasized in its statement thatThe digital euro is of great significance for maintaining the EU's monetary sovereignty, reducing reliance on foreign currencies in retail payments, and consolidating the unity and autonomy of the single market.The statement further points out that if the digital transformation of payment systems is primarily led by non-EU entities, it could expose European users and merchants to new systemic risks.

The European Central Bank (ECB) is pushing forward with its digital euro project, aiming to reduce reliance on payment companies such as Visa and Mastercard. If the legislative process proceeds smoothly, the ECB expects to launch a pilot program in 2027 and plans to officially launch the digital euro in 2029.

Parliamentary stance shift

A report released last October by parliamentary rapporteur Fernando NavarreteIt was suggested that only an offline version of the digital euro be launched, unless users cannot solve their online payment needs on their own.But Tuesday's parliamentary vote overturned the proposal.Instead, they support the European Central Bank's proposed dual-function online and offline solution.

The Committee on Economic and Monetary Affairs is expected to vote on the proposal in early May. Piero Cipolone, a member of the European Central Bank's Executive Board, has been a strong advocate for a dual-function version, stating that online and offline features will complement each other, making the user experience of digital currency closer to that of cash.

Monetary sovereignty considerations

The European Central Bank's push for a digital euro project, aimed at reducing reliance on external suppliers to the European payments system, is particularly urgent given the increasingly strained transatlantic relations. However, the project still awaits the completion of the relevant legal framework legislation at the EU level.

The European Parliament has emphasized that the digital euro is a key tool for enhancing the EU's monetary sovereignty. As the payment system undergoes accelerated digital transformation, the EU must ensure that its payment ecosystem is not dominated by non-EU entities, avoiding new external dependencies and sovereign risks in critical financial infrastructure sectors.