Stablecoin growth will erode bank deposits, says ECB’s Cipollone
ECB Executive Board member Piero Cipollone warned that broader stablecoin use could weaken commercial banks by pulling retail deposits away. In a speech in Rome, he said digital payments are changing banking and making Europe more dependent on non-European payment infrastructure. He argued that banks are already losing fee income and customer transaction data to mobile payment firms. Cipollone said a digital euro could help protect banks’ role in payments while keeping public money central in the system. The ECB has chosen 36 payment service providers for a 12-month digital euro pilot due to start in the second half of 2027. The pilot will test how a retail central bank digital currency could work across the euro area before any issuance decision, which could come as early as 2029.
