Dear friends,
After weeks and months of intense negotiations in the European Parliament, I’m finally emerging into the sunlight again. But it was worth it! We secured important wins and strong compromises on several laws that matter to me. One of them is the Digital Euro.
For years, I have worked on this file to make the Digital Euro a reality. Now, the Committee on Economic and Monetary Affairs has adopted its final position, and I’m proud that we managed to make it strong, practical and beneficial for everyone in Europe. Next, we will enter negotiations with the European Commission and the Member States. We’re on the right track, and the Digital Euro could be in your wallet as early as 2029.
I’ve realised, though, that many people still don’t really understand what this project is about, what value it brings, or why it could become a real game changer for how Europeans pay. There are also plenty of misconceptions: Is it safe? Will it replace cash? Is it a tool for mass surveillance? I can assure you that we have developed a system that lets everyone choose whether to use the Digital Euro or not, while providing the privacy and security people rightly expect. Let me explain the key compromises we have agreed on.
When I first started working on the Digital Euro, the world looked very different, and so did my priorities. Back then, I saw it mainly as a boost for innovation and proof that Europe can still build modern payment solutions of its own. That is still true, but today the focus has shifted. The Digital Euro is also an anti-Trump coin. It is a European payment system that makes us less dependent on large US providers and helps keep our money on this continent. With the direction the US is taking, Europe needs to reduce these dependencies. We have already seen Trump use a kill switch on AI, cutting Europe off from the latest technological developments. We simply do not know whether he could one day do the same with Visa or Mastercard, whether against individuals he dislikes or even on a much larger scale. That would put around a fifth of Europe’s GDP at risk.
FLEXIBLE, PRIVATE, FAIR
Once introduced, the Digital Euro will provide a direct European alternative to the payment cards we use today. Right now, none of the major digital payment systems are fully under European control. The Digital Euro would change that. It will be backed and guaranteed by the ECB, just as cash is today, ensuring that everyone has access to a stable and reliable means of payment. We also agreed that it can be used both online and offline, something I fought hard for. That means you will be able to pay whether your phone is connected to the internet or not. It also makes the Digital Euro particularly valuable during power outages, when card terminals and ATMs may stop working.
The Digital Euro will also come with strong privacy protections. Your bank will know when you transfer money from your account into your digital wallet, it couldn’t work otherwise, but it will not see what you buy or who you pay. Likewise, the ECB will be able to verify that a transaction took place, but not its details. In that sense, it works much like cash: once the Digital Euros are in your wallet, how you spend them is your business.
We also fought for small merchants, many of whom were sceptical about the project. Today they pay high fees every time you use a card, that’s why your local corner shop often prefers cash. I say: Visa and Mastercard have had their hands in the pockets of Europe’s small businesses for long enough. The Digital Euro will involve transaction fees, but we made sure that no merchant will be worse off than today and that the smallest businesses will actually pay less. That should make accepting Digital Euro payments an attractive option.
CASH IS CRUCIAL
Lastly, many people worry that cash will disappear. I have even received questions from journalists who believe this is an EU plan to force everyone to pay digitally. It is not. We included strong safeguards for cash in the legislation. The Digital Euro is simply an additional payment option alongside cash and cards. We made it clear that cash must continue to be accepted, both in shops and at machines. We also strengthened access to cash by requiring Member States and banks to maintain and, where necessary, expand the necessary infrastructure. It is all about choice: use the Digital Euro if you want to, or keep using cash if that’s what you prefer.
I believe we are now on the right path. The Digital Euro is coming, and not a minute too soon. It will strengthen Europe’s autonomy, foster innovation, give consumers and businesses new opportunities and, ultimately, become a normal part of everyday life. If we achieve that, it will be a genuine European success.
Yours,
Damian
