The rise in the use of stablecoins could lead to a reduction in retail bank deposits, according to European Central Bank (ECB) Executive Board member Piero Cipollone at the annual Federcasse meeting.
Together we will strengthen trust in money and the banking system, says Executive Board member Piero Cipollone in a @FedercasseBCC lecture.
The digital euro would preserve the role of public money and ensure banks remain involved in the payments ecosystem https://t.co/EvGu9aKriK pic.twitter.com/umxcST2RNR
— European Central Bank (@ecb) July 17, 2026
He noted that banks are already losing fees and payment data due to the spread of mobile services.
“If the use of stablecoins increases in the future, banks will also lose retail deposits,” he stated.
In this context, Cipollone described CBDC as a way to maintain the role of public money in digital payments and keep banks within the payment ecosystem. He emphasized that the project should also provide the EU with its own managed infrastructure: currently, two-thirds of card payments are processed through non-European systems, and this share continues to grow.
In 13 out of 21 countries in the currency bloc, there is no national card scheme, and more than half of the states also lack a domestic solution for e-commerce. According to the regulator’s calculations, a digital euro with set limits and no interest should not pose threats to bank liquidity and financial stability.
Earlier, on July 14, the ECB selected 36 banks and payment companies for a pilot project. Its operational phase will begin in the second half of 2027 and last for 12 months.
