European Central Bank Executive Board member Piero Cipollone said wider stablecoin adoption could erode bank deposits. He argued that a digital euro is needed to preserve banks' role in payments.
Cipollone outlined a three-layer threat to banks from digital payments during his remarks. He positioned the digital euro as the only structural solution to maintain stability in the financial system.
The comments come as stablecoins gain traction in digital transactions across Europe. Cipollone emphasized that without intervention, banks face risks to their deposit base.
He stressed that the digital euro would help keep payment activities within the traditional banking framework. The ECB has previously explored central bank digital currency options to address similar concerns.
