The ECB finished the preparation phase of the digital euro project in late 2025. On 23 June 2026 the European Parliament's economic affairs committee approved its position on the regulation that will give the digital euro a legal basis. Negotiations with EU member states follow, with agreement targeted by the end of 2026 and first issuance expected around 2029. For payment service providers in the euro area, the distribution model and its commercial effects are now a planning question, not a distant one.
The distribution model: intermediaries are central
The ECB has been consistent on one design point: people will hold digital euro through banks and payment service providers, not in accounts at the ECB. This is a commercial choice as much as a technical one. The ECB does not want to become a retail bank, and existing payment firms already have the customer reach.
For PSPs this raises two questions. The first is obligation: the regulation is expected to require banks to offer basic digital euro services to their customers. The second is opportunity: which services, beyond that basic access, can firms build and charge for around the digital euro.
Holding limits and what they mean commercially
Holding limits, caps on how much digital euro one person can hold, are part of the design to stop large outflows from bank deposits. The level matters. A low limit, for example around €3,000, makes the digital euro mainly a means of payment for everyday purchases. A higher limit brings it closer to competing with bank deposits. The final figure will shape both the impact on banks and which PSP services make sense.
What PSPs should prepare
PSPs should review the technical specifications the ECB is developing for intermediaries, model how digital euro payments could affect current revenue, particularly fees on card and account-based payments, and follow the negotiations on the regulation, which will set what participation is compulsory and how digital euro services can be priced.