European Central Bank Executive Board member Piero Cipollone said large-scale stablecoin adoption could weaken commercial banks’ retail deposit base and reshape competition in the traditional banking system. Speaking Friday in Rome at the Federation of Italian Cooperative Banks, Cipollone said digital payments are changing banking while also increasing Europe’s reliance on non-European payment infrastructure. He noted that banks are already dealing with lower fee income from payments and the loss of transaction data as mobile payment providers expand. In his view, broader use of stablecoins and other digital-asset payment tools could add to deposit outflow pressure for commercial banks. Cipollone said a digital euro would help preserve the role of public money, keep banks involved in the payments ecosystem, and meet changing customer needs. Earlier this week, the ECB selected 36 payment service providers for a 12-month digital euro pilot involving banks, fintech firms, and payment companies. The pilot is scheduled to begin in the second half of 2027 to test the feasibility of a retail central bank digital currency in the euro area. The ECB has previously said the digital euro could be issued as early as 2029 if legislation and testing move ahead smoothly.
European Central Bank Executive Board member Piero Cipollone said large-scale adoption of stablecoins could weaken commercial banks’ retail deposit base and alter the competitive structure of the traditional banking system.
Speaking Friday in Rome at the Federation of Italian Cooperative Banks, Cipollone said digital payments are reshaping banking and increasing Europe’s dependence on non-European payment infrastructure. He said banks are already facing lower payment fee income and a loss of transaction data as mobile payment providers expand.
He added that as stablecoins and other digital-asset payment tools become more common, commercial banks could face greater pressure from deposit outflows. Cipollone said the digital euro would help preserve the role of public money, keep banks involved in the payments ecosystem, and respond to changing customer financial needs.
“The digital euro can both preserve the role of public money and ensure that banks retain an important role in the payment system,” Cipollone said.
On Tuesday, the ECB selected 36 payment service providers to take part in a 12-month digital euro pilot. Participants include banks, fintech companies, and payment firms. The pilot is scheduled to start in the second half of 2027 and is intended to test the feasibility of a retail central bank digital currency, or CBDC, in the euro area.
The ECB has previously said that, if related legislation and testing progress smoothly, the digital euro could be formally issued as early as 2029.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
