EU Council Agrees on Digital Euro Framework with Online and Offline Modes
The EU Council has agreed on a negotiating position that would allow the European Central Bank (ECB) to issue a digital euro featuring both online and offline payment modes. Although issuance is not yet authorized, this agreement enables negotiations with the European Parliament to commence.
A two-track design has been confirmed to maintain cash-like features while enabling secure digital payments. The ECB has completed its technical groundwork after a two-year preparation phase, with October 2025 marking the end of this preparatory period. Subsequent steps will depend on legislative decisions.
The offline mode will allow direct token transfers between certified devices without internet access. Only offline-wallet funding and defunding transactions would be recorded, preserving privacy that is described as similar to cash for low-value payments. The online mode supports everyday digital payments with transactions being pseudonymous; banks will have access only to data relevant for anti-money laundering and counter-terrorist financing (AML/CFT), with no commercial use allowed without user consent.
Privacy concerns have been raised by the European Data Protection Board, warning that physical proximity cannot be fully guaranteed digitally and that relay attacks could compromise offline privacy. The Council has proposed limits on the amount of digital euros individuals can hold to prevent significant shifts of deposits from banks.
Basic digital euro services would be free of charge, although charges could apply for additional services. Device manufacturers are required to provide fair access to both hardware and software to support digital euro wallets, ensuring payment providers can operate across the ecosystem.
The offline mode is positioned as a resilience tool in case of outages and a means to support financial inclusion, while the online mode is designed for seamless integration with existing digital infrastructures and private payment services.
