ECB warns stablecoins are draining European bank deposits and advocates for a digital euro as an alternative to non-European payment infrastructure.
DeFi & Yields ·
An ECB Executive Board member has warned that stablecoins and mobile payment providers are drawing retail deposits and payment revenue away from European commercial banks. Piero Cipollone raised concerns that this trend is increasing Europe's reliance on non-European payment infrastructure, framing the shift as a structural vulnerability for the region's financial system.
In response to these competitive pressures, Cipollone advocated for a digital euro as an alternative that would keep payment activity within European institutions and infrastructure. The warning reflects growing central bank anxiety over the role of stablecoins in reshaping retail banking relationships and transaction flows.
What remains unclear is whether the ECB intends to accelerate digital euro development or deployment, or what timeline the institution has in mind for addressing the deposit and payment revenue losses Cipollone described.