Home›Crypto›Regulation›ECB warns stablecoins could erode bank deposits

ECB warns stablecoins could erode bank deposits

ECB executive board member Piero Cipollone said stablecoin adoption may weaken banks’ retail deposit base, while the digital euro is intended to keep banks central to payments.

Reported · Written up by our desk · Regulation

European Central Bank executive board member Piero Cipollone said broader stablecoin adoption could erode commercial banks’ retail deposit base, in remarks delivered Friday in Rome to Italy’s Federation of Cooperative Credit Banks.

Cipollone argued that digital payments are reshaping banking, with banks losing payment fees and transaction data to mobile payment providers, and said Europe is increasing its reliance on non-European payment infrastructure.

He said the digital euro would preserve the role of public money and help ensure banks remain involved in the payments ecosystem while still meeting customers’ needs.

Separately, the ECB has selected 36 payment service providers for a 12-month digital euro pilot that is set to begin in the second half of 2027, with a decision on issuance potentially as early as 2029, according to Cointelegraph.

More like this

Sources