The European Parliament has recently backed the issuance of a digital euro in both online and offline formats, challenging the proposal from the lead legislator which advocated for an exclusively online version. This decision was made during a vote on Tuesday, where legislators approved an amendment that aligns with the European Central Bank's push for both variations of the digital currency. This development is seen as a response to the growing need for Europe to lessen its reliance on American payment companies like Visa and Mastercard, especially in light of worsening transatlantic relations.

The European Central Bank (ECB) has been advocating for a digital euro to bolster European autonomy in the financial sector. However, the project still lacks the necessary legal framework to proceed. The Parliament is in the process of finalizing its position after EU member states established their stance in December. The urgency of this initiative stems from a broader context where Europe aims to maintain competitiveness while ensuring consumer privacy and security in digital financial transactions.

Furthermore, the rapporteur for the Parliament, Fernando Navarrete, had previously proposed an offline euro variant but emphasized the importance of ensuring that the private sector can also create its solutions. This indicates a dialogue within European institutions about the best approach to implement digital currency that meets the needs of consumers while strengthening the EU's financial sovereignty.