European Central Bank Executive Board member Piero Cipollone said wider stablecoin adoption could erode commercial banks’ retail deposit base.
He made the remarks Friday in a speech to Italy’s Federation of Cooperative Credit Banks in Rome, where he argued that digital payments are reshaping banking and increasing Europe’s reliance on non-European payment infrastructure.
Cipollone said banks are already losing payment fees and transaction data to mobile payment providers. He added that the digital euro would help preserve banks’ role in the payments system.
“The digital euro would both preserve the role of public money and ensure banks remain involved in the payments ecosystem while continuing to meet their customers’ needs,” Cipollone said.
On Tuesday, the ECB selected 36 payment service providers, including banks, fintechs and payment companies, for a 12-month digital euro pilot due to begin in the second half of 2027.
The project aims to test how a retail central bank digital currency could operate across the euro area before any decision on issuance, which the ECB has said could come as early as 2029.