European Central Financial institution Government Board member Piero Cipollone mentioned wider stablecoin adoption might erode industrial banks’ retail deposit base.
He made the remarks Friday in a speech to Italy’s Federation of Cooperative Credit score Banks in Rome, the place he argued that digital funds are reshaping banking and growing Europe’s reliance on non-European cost infrastructure.
Cipollone mentioned banks are already shedding cost charges and transaction information to cell cost suppliers. He added that the digital euro would assist protect banks’ position within the funds system.
“The digital euro would each protect the position of public cash and guarantee banks stay concerned within the funds ecosystem whereas persevering with to satisfy their clients’ wants,” Cipollone mentioned.
On Tuesday, the ECB chosen 36 cost service suppliers, together with banks, fintechs and cost firms, for a 12-month digital euro pilot resulting from start within the second half of 2027.
The venture goals to check how a retail central financial institution digital foreign money might function throughout the euro space earlier than any determination on issuance, which the ECB has mentioned might come as early as 2029.
