On 30 September the European Parliament and the Council held a third round of political talks on the digital euro, without a deal. The Council wants the maximum merchant fee tied at first to debit card pricing for up to 10 years. Parliament wants five years and a rule that merchants never pay more than for a comparable payment method. The two sides also disagree on who sets the holding limit per person.

What it means: The third round of political talks on the digital euro showed that the hardest issues are practical and economic rather than technical: how much merchants will pay to accept it and how much each citizen may hold, two questions that will decide whether the new instrument becomes popular or stays on the sidelines. The gap between Council and Parliament on how long the fee cap should be tied to debit card pricing, and Parliament's proposal that merchants should never pay more than for a comparable method, show that acceptance cost is central to whether merchants see it as an opportunity or yet another charge. The holding limit matters mostly to banks, because it determines how many deposits could move from their accounts into digital euro during a crisis, and the dispute over who sets it is also about control of policy. Until there is a deal, businesses cannot calculate costs precisely, but they should follow the talks, because the outcome will also influence fees on other payment methods.

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