Stablecoin growth will erode bank deposits, says ECB’s Cipollone

ECB’s Piero Cipollone said stablecoin adoption could erode bank deposits, but the digital euro will keep banks at the center of payments.

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.

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