Digital euro explained: launch timeline, holding limit, offline use

The digital euro is a planned electronic form of cash that the European Central Bank (ECB) would issue for everyday payments across the euro area, online and offline. As of October 2026 it does not exist yet: the EU regulation that would create it is in final negotiations between the European Parliament and the Council, and the ECB says that if the law is adopted in 2026, the first digital euros could be issued during 2029. Each person's balance would be capped by a holding limit that has not been set.

What the digital euro is, in plain terms

Today, the only central bank money that ordinary people can hold is banknotes and coins. Money in a bank account or a payment app is a claim on a private company. The digital euro would be a digital claim on the central bank itself, with legal tender status, held in a wallet opened through a bank or another supervised payment service provider.

According to the ECB's own FAQ, the main design principles are:

• Free basic use for individuals, with providers allowed to sell extra services.
• No interest, positive or negative, on holdings, as with cash in a wallet.
• Distribution through banks and other licensed providers, not through accounts at the ECB.
• A complement to cash, which stays legal tender.
• Not programmable money. The ECB says it would never restrict where or when people spend, although conditional payments (for example, paying only on confirmed delivery) could be supported.

Digital euro timeline: key dates so far

The project has been running for about six years. The main milestones, from the ECB, the European Parliament's Legislative Train and the Council:

• October 2020: ECB publishes its first report on a digital euro.
• October 2021 to October 2023: investigation phase on design and distribution.
• June 2023: European Commission proposes the legal framework as part of a single currency package that also covers the legal tender status of cash.
• November 2023 to October 2025: ECB preparation phase, including work on a scheme rulebook and selecting technology providers.
• October 2025: ECB Governing Council decides to move on to the next phase of preparation.
• December 2025: Council of the EU agrees its negotiating position.
• 23 June 2026: Parliament's Economic and Monetary Affairs Committee (ECON) adopts its report, 43 votes to 14 with 1 abstention, led by rapporteur Fernando Navarrete Rojas (EPP, Spain).
• 9 July 2026: after right-wing groups challenged the committee's decision, the full Parliament confirms the mandate to negotiate, 416 votes to 169 with 22 abstentions.
• From July 2026: trilogue negotiations between Parliament, Council (under the Irish presidency) and Commission. The ECB's 2029 timetable assumes the regulation is adopted by the end of 2026.

What happens next

• Second half of 2027: a 12-month pilot with 36 payment service providers, selected merchants and staff of the ECB and national central banks, testing in-shop and person-to-person payments. Merchants interested in e-commerce testing can apply until 27 October 2026.
• 2029: possible first issuance, but only if the regulation is adopted in 2026. The ECB stresses that the actual decision to issue will be taken only after the legislation is in place.
• Roll-out period: Parliament's text foresees at least 24 months between authorisation and full launch so that banks, shops and users can prepare. This still has to be agreed with the Council.

So, when will the digital euro be introduced? On the current plan, no earlier than 2029, and any slip in the legislation would push that date back.

The holding limit: how much could you hold?

To stop large sums leaving bank deposits, each individual would face a cap on digital euro holdings. As of October 2026 no figure has been agreed.

• The ECB has tested hypothetical limits of up to €3,000 per person and concluded that such levels would not threaten financial stability even in an extreme scenario. That is a test value, not a decision.
• Payments above the limit would still work. Users could link a bank account so that excess incoming funds move there automatically and shortfalls are topped up at the moment of paying.
• Businesses would not hold digital euros as a balance. Under Parliament's text they could keep incoming payments only briefly, up to 24 hours.

Who sets the limit

This is one of the main open points. In the Commission's original proposal the ECB would set the limit. The Council's position has the ECB set limits within an overall ceiling defined by the Council. Parliament's position gives the Commission the job of setting the EU-wide ceiling based on ECB recommendations, again with a review at least every two years and full decision rights for Parliament.

Offline payments

A distinctive feature is a version that works without an internet connection, stored locally on a phone or card and passed device to device, much like handing over a banknote. Key points:

• For offline payments, the ECB says only the payer and the payee would know the transaction details.
• Anti-money laundering checks happen when money is loaded onto or taken off the device, through the provider.
• Under Parliament's text, offline payments would carry no fees, and money stored offline on a lost device is lost, with no refund.

Privacy and data protection

Online payments would be processed by providers, who already handle anti-money laundering checks. Parliament's position requires privacy by design and by default, the use of techniques such as zero-knowledge proofs, data processing only where strictly necessary, and no access for the ECB to data that identifies individual users. How far these safeguards go is part of the negotiation.

Shops, fees and acceptance

• Acceptance: most businesses would be required to accept the digital euro. Parliament exempts the self-employed and micro and small companies that do not accept other digital payments, and allows temporary refusal in cases such as power cuts.
• Fees: fees charged to merchants and between providers would be capped. How providers are compensated is still disputed: Parliament favours a "no worse off" principle, while the Council prefers national exemptions, according to the Legislative Train.
• Who can distribute: Parliament also backs letting banks and providers from EU countries outside the euro area distribute it.

Cash protection

The package includes a separate regulation on the legal tender of euro banknotes and coins. Parliament's mandate would require euro area countries to keep cash accessible, bar businesses from refusing cash, and have member states monitor its availability, with attention to older people, low-income groups and the unbanked. Negotiations on that file run alongside the digital euro talks.

What the digital euro is not

• Not a cryptocurrency. It would be central bank money issued and guaranteed by the Eurosystem, unlike bitcoin or privately issued stablecoins.
• Not a replacement for cash. Banknotes and coins remain legal tender.
• Not a wholesale settlement tool. It is a retail instrument for people and shops; separate Eurosystem work covers settlement between financial institutions.
• Not an ECB bank account. Users would deal with their own bank or payment provider.

The file sits at the intersection of payments, data protection and digital sovereignty. For related coverage see our Policy and Digital Economy sections, and our explainer on the EU Digital Identity Wallet deadline, another piece of public digital infrastructure due to reach citizens in the coming years.

Frequently asked questions

When will the digital euro be launched?

As of October 2026, the ECB says the digital euro could be issued during 2029 if EU lawmakers adopt the regulation in 2026. A pilot is planned for the second half of 2027, and the final issuance decision comes only after the law is adopted.

What is the digital euro holding limit?

No limit has been decided as of October 2026. The ECB has tested hypothetical caps of up to €3,000 per person, and Parliament and Council are still negotiating who sets the ceiling.

Will the digital euro work offline?

Yes, the proposals include an offline version stored on a device and paid directly to another device. Only the payer and payee would know the transaction details, according to the ECB.

Will the digital euro replace cash?

No. The ECB and both co-legislators describe it as a complement to cash, and a parallel regulation is meant to protect the legal tender status and availability of banknotes and coins.

Is the digital euro a cryptocurrency?

No. It would be central bank money issued by the Eurosystem with legal tender status, unlike crypto-assets or private stablecoins.