Finance ministers from European Union member states have reached a consensus on the procedures for setting holding limits on the upcoming digital euro, signaling progress toward launching the EU’s central bank digital currency (CBDC). The announcement came during a Eurogroup press conference following the Economic and Financial Affairs Council meeting in Copenhagen, Denmark, on Friday.
Officials clarified that the agreement focuses on how limits will be established, rather than specifying exact thresholds. This move aims to ensure a coordinated approach among EU members and aligns with broader regulatory discussions surrounding digital currency adoption.
Advancing the digital euro amid privacy and banking concerns
The European Central Bank (ECB) has been actively developing the digital euro, emphasizing privacy and usability. ECB board member Piero Cipollone stated that the system will allow Europeans to make payments at all times with a free, universally accepted digital means of payment, even in case of major disruptions. He added that offline functionality will be preserved and that privacy will be maintained, with the bank having no access to payer or payee information.
While global stablecoins gain traction, EU policymakers see the digital euro as a tool to maintain financial sovereignty and reduce dependency on dollar-based digital assets. Earlier in 2025, ECB advisers such as Jürgen Schaaf and Fabio Panetta highlighted the need for a digital euro to address the rapid adoption of cryptocurrencies and stablecoins, emphasizing strategic risk mitigation.
Digital euro as Europe’s response to stablecoins
The move to finalize procedures for holding limits reflects the EU’s proactive stance amid rising global stablecoin use. Holding limits are intended to balance accessibility with risk management, ensuring that the digital euro complements the existing banking system while addressing concerns about large-scale accumulation of CBDC by individuals or entities.
EU finance ministers’ agreement sets the stage for a regulated, secure, and privacy-conscious rollout, positioning the digital euro as a key instrument in Europe’s financial infrastructure.