The European Parliament's economic committee has backed a digital euro designed to reduce Europe's dependence on US-controlled payment networks such as Visa and Mastercard. The ECB-backed currency is targeted for launch by 2029 after a full parliamentary vote and negotiations with EU member states. Euronews reports: Under the proposal, consumers would be able to hold digital euros in a dedicated wallet, subject to a holding limit that has yet to be determined. The system would support both online and offline payments and is intended to offer a high degree of privacy, with the ECB unable to directly identify users from their payment data. The ECB would provide the underlying infrastructure, while commercial banks and payment service providers would offer digital euro services to customers. Financial institutions are expected to be compensated for their participation in the scheme, while merchants will pay fees that are expected to be lower than those associated with current card transactions. How that compensation should be structured remains one of the most contentious issues ahead of negotiations with EU member states, according to three sources familiar with the discussions. [...] The European Parliament is expected to formalise the committee's position during a plenary vote in Strasbourg in early July. Negotiations with the EU's 27 member states would then begin, with lawmakers aiming to reach a final agreement before the end of the year.

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