(26 November 2025 – Europe) The European Commission (EC) has proposed legislation to ensure continued cash acceptance however increasing digitalisation is driving a shift away from banknotes as Digital Euro issuance comes into focus by 2029.
The declining use of cash in the Euro area, with cash transactions now valued lower than card transactions and a growing number of companies no longer accepting cash, underpins the need for new payment solutions. Sweden’s central bank is urging a legislative rethink on cash use, proposing new obligations for merchants and banks to preserve cash access amid growing digital risks.
The European Central Bank (ECB) plans to be ready for a potential first issuance of the Digital Euro during 2029, working under the assumption that European co-legislators adopt the Digital Euro Regulation in the course of 2026. The Eurosystem aims to modernise central bank money in response to the transformation taking place in payments and finance.
“The ECB is committed to improving cross-border payments globally by implementing the cross-currency settlement service for cross-border payments, interlinking with fast payments systems outside Europe through bilateral links (e.g. India, Switzerland) and multilateral networks (Nexus)” stated ECB Member of the Executive Board, Piero Cipollone.
“By overcoming national market fragmentation, the Digital Euro would enable large-scale innovation, creating a unified European payments system & reducing costs for payment providers. The digital euro is critical for Europe’s autonomy, reducing reliance on foreign payment systems, and ensuring access to central bank money for digital transactions in the euro area.”