Svmuu News: Piero Cipollone, a member of the Executive Board of the European Central Bank (ECB) (ECB), stated that the widespread adoption of stablecoins could erode commercial banks’ retail deposit base and alter the competitive landscape of the traditional banking system.
Speaking Friday at the Italian Cooperative Banks Federation in Rome, Cipollone noted that digital payments are reshaping the banking industry while increasing Europe’s reliance on non-European payment infrastructure. Banks are already facing declining payment fee revenue and the loss of transaction data due to the growth of mobile payment service providers.As digital asset payment tools such as stablecoins become more widespread, commercial banks may face increased pressure from deposit outflows.
Cipollone emphasized that the digital euro will help preserve the status of public money and ensure that banks remain engaged in the payments ecosystem while meeting customers’ evolving financial needs.
“The digital euro will both preserve the role of public money and ensure that banks maintain a vital role in the payment system,” Cipollone said.
On Tuesday, the European Central Bank (ECB) selected 36 payment service providers to participate in a 12-month pilot project for the digital euro. Participants include banks, fintech companies, and payment firms.The pilot, scheduled to launch in the second half of 2027, aims to test the feasibility of operating a retail central bank digital currency (CBDC) in the eurozone. The
European Central Bank (ECB)previously stated that, provided relevant legislation and testing proceed smoothly, the digital euro could be officially launched as early as 2029. (Cointelegraph)