Fernando Navarrete, the European Parliament’s lead MEP on digital euro legislation, has abandoned his push for a scaled-back version of the project, signaling a major shift in political support ahead of a critical vote. The European Central Bank and European Commission had long advocated for an electronic euro by 2029 to reduce reliance on private payment systems like Apple Pay and Visa, but Navarrete previously insisted the currency should only replace cash in offline scenarios. After a Wednesday meeting, however, he began revising his draft report to align with the Commission’s broader vision, which includes real-time online payments. BNP Paribas and Deutsche Bank’s competing Wero mobile payment service highlights the tension between public and private sector ambitions.

The European Parliament’s center-left bloc rejected Navarrete’s original proposal, favoring a unified approach that integrates both offline and online functionality. Piero Cipollone, an ECB official, emphasized the digital euro’s role in restoring payment freedom, noting cash is unusable for nearly one-third of transactions. While the digital euro project now faces stronger backing, conservative and far-right parties remain opposed. If approved, the legislation must still negotiate terms with EU member states before finalizing rules.

The European Central Bank plans a 2027 pilot, with full issuance targeted for 2029. Navarrete stressed collaboration with private firms to ensure the euro’s practicality, though debates over sovereignty and competition persist.