ECB: Stablecoin adoption may undermine the foundation of bank deposits, accelerating the rollout of the digital euro

PANews July 18, citing Cointelegraph, reported that Piero Cipollone, a member of the Executive Board of the European Central Bank (ECB), said that the large-scale adoption of stablecoins could weaken commercial banks’ retail deposit base and change the competitive landscape of the traditional banking system.

This Tuesday, the ECB selected 36 payment service providers to take part in a 12-month pilot program for the digital euro. Participants include banks, fintech companies, and payment firms. The pilot is scheduled to begin in the second half of 2027 and is designed to test the feasibility of a retail-type central bank digital currency (CBDC) operating in the euro area. Cipollone emphasized that the digital euro will help maintain the status of public money, ensure banks continue to participate in the payments ecosystem, and meet customers’ evolving financial needs.