ECB's Cipollone: Stablecoins Could Erode Bank Deposits
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Piero Cipollone, ECB Executive Board member, told Italy's Federation of Cooperative Credit Banks in Rome on Friday that stablecoin adoption could erode commercial banks' retail deposit base
- Cipollone said digital payments are reshaping banking and increasing Europe's reliance on non-European payment infrastructure, noting banks are already losing payment fees and transaction data to mobile payment providers
- Cipollone argued the digital euro would 'preserve the role of public money and ensure banks remain involved in the payments ecosystem while continuing to meet their customers' needs'
- The ECB on Tuesday selected 36 payment service providers — including banks, fintechs and payment companies — for a 12-month digital euro pilot set to begin in the second half of 2027
- The digital euro project is testing how a retail central bank digital currency could operate across the euro area before any issuance decision, which the ECB has said could come as early as 2029
Why it matters: The ECB is framing the digital euro as a defensive play to keep European banks relevant as stablecoins and mobile payment apps siphon deposits, fees, and transaction data — with a concrete 2027 pilot and possible 2029 issuance decision now anchoring that timeline.
