Azernews.Az

by Alimat Aliyeva

The European Parliament has approved a proposal to create a digital euro, bringing the project closer to its final stage before the planned introduction of the new form of currency in January 2029, AzerNEWS reports.

According to the European Parliament’s vote, the initiative was supported by 416 lawmakers, while 169 voted against it. The decision allows the project to move into the final phase of negotiations between the European Parliament, the European Council, and the European Commission.

EU institutions are expected to agree on the final details of the digital euro framework by the end of this year. After that, the European Central Bank (ECB) plans to begin limited testing of the currency in 2027 before a possible full rollout.

European officials say the digital euro is designed to strengthen the EU’s financial independence and reduce reliance on foreign payment networks, particularly those operated by major U.S. companies. The new currency is expected to work alongside traditional cash payments rather than replace physical money completely.

However, the project has also sparked debate. Some lawmakers and privacy experts have raised concerns that a digital currency could increase government oversight of financial transactions and potentially become a tool for monitoring citizens’ spending habits.

Supporters argue that the digital euro could make payments faster, safer, and more accessible, especially as online transactions continue to grow worldwide. The European Union sees the project as a way to prepare its financial system for the future while maintaining control over its own digital payment infrastructure.