Catenaa, Friday, January 09, 2026- The future of the digital euro remains uncertain as the European Parliament approaches a key vote, with no clear majority backing the plan, the Financial Times reported Monday.
The European Central Bank is promoting the project ahead of a potential 2029 launch following a pilot in 2027. Supporters, primarily left-leaning MEPs, remain over 40 votes short of a majority, while far-right members oppose it and other parties are divided.
German EPP MEP Markus Ferber described building consensus as challenging, stressing that offline payments might be the only area with clear demand and that the digital euro should not become a political prestige project.
Spain’s Fernando Navarrete, appointed by the parliament to evaluate the digital euro, has recommended a scaled-down version focused on offline, person-to-person payments.
Some European banks have raised concerns that a central bank digital currency could disrupt private sector payment systems.
The digital euro debate mirrors broader global caution around central bank digital currencies. The U.S. Federal Reserve has studied a retail CBDC but has made no commitments, citing the need for executive and congressional approval.
Fed Chair Jerome Powell has emphasized political and practical constraints, noting that privately issued stablecoins currently dominate market momentum.
The vote, expected within the first half of 2026, will determine whether the digital euro moves forward, with outcomes still highly uncertain.
