Here’s another clean rewrite with a more concise, editorial tone:

EU lawmakers have moved forward with plans for a European Central Bank (ECB) digital euro by 2029, approving a legal framework aimed at reducing reliance on U.S.-dominated payment networks and stablecoin issuers.

The European Central Bank secured a major step after the European Parliament’s Economic and Monetary Affairs (ECON) committee voted Tuesday to back the draft legislation for a digital euro.

The committee also approved the start of final “trilogue” negotiations between EU member states and the Parliament, bringing the proposal closer to a final agreement.

The vote follows three years of debate between policymakers and commercial banks, which have warned the project could accelerate deposit outflows and reduce fee income.

The initiative is designed not only to modernize payments but also to strengthen Europe’s monetary sovereignty. ECB President Christine Lagarde has argued that a central bank digital currency is needed to counter the growing influence of dollar-backed stablecoins such as USDT and USDC.

Lagarde has also addressed privacy concerns, stressing that cash will remain in circulation and that the digital euro is intended to complement, not replace, physical currency.

EU officials have highlighted that nearly two-thirds of eurozone card payments are processed by non-European firms, primarily Visa and Mastercard, underscoring the bloc’s dependence on foreign payment infrastructure.

Markus Ferber, a senior member of the ECON committee, said strengthening payment resilience has become a geopolitical priority, warning against reliance on a small number of external providers.

The framework would allow the ECB to launch both online and offline versions of the digital euro by 2029. The offline feature would enable peer-to-peer transfers without internet access, offering cash-like privacy by limiting transaction visibility even for the central bank.

The development comes shortly after the U.S. Senate approved a four-year ban on central bank digital currencies, with the proposal now advancing to the House of Representatives.

Commercial banks have pushed for strict holding limits on digital euro wallets to prevent large-scale withdrawals from traditional accounts during financial stress.

The ECB will now begin a 12-month pilot phase, testing a beta version of the system with selected merchants and payment providers ahead of broader rollout.

Ferber summarized the goal simply: “The euro must work in your pocket and on your phone.”