European Parliament Backs Digital Euro

STRASBOURG, July 9 (NNN-dpa) -- The European Parliament backed the introduction of a digital euro by a large majority in Strasbourg on Thursday, paving the way for discussions on a legal framework for an electronic version of the common European currency, reported German news agency dpa.

Talks between parliament and the member states are scheduled for the middle of the month, after 416 delegates voted in favour, 169 against and 22 abstained.

The aim is for the digital euro to supplement, but not replace, cash. To date, US providers, including PayPal, Mastercard and Visa have dominated the digital payments market in Europe.

Eurozone central banks now aim to provide an alternative.

The new currency is to be available both online and offline and to ensure the protection of data. 

Basic services, such as opening an account and administering balances, are to be free of charge.

Eurozone central banks have for years been working towards a digital version of the euro and are now aiming for a launch in 2029, with a pilot due to start next year.

--NNN-dpa