The European Central Bank (ECB) is sounding the alarm: the rapid rise in popularity of stablecoins could trigger a massive outflow of retail deposits from the traditional banking system. This statement was made by ECB Executive Board member Piero Cipollone at the annual meeting of the Italian federation of cooperative banks, Federcasse.
According to Cipollone, the banking sector is already feeling pressure from mobile payment services, losing fee income and control over customer data. However, the true threat lies precisely in stablecoins — digital assets pegged to fiat currencies. "If the use of stablecoins continues to grow, banks will face a direct outflow of retail deposits," he emphasized.
The Digital Euro as a Lifeline
Against this backdrop, Cipollone presented the digital euro (CBDC) as a strategic tool capable of preserving the role of public money in the era of digital payments while simultaneously keeping banks within the payment ecosystem. The key argument is the need to create a sovereign European infrastructure. Currently, two-thirds of all card transactions in the EU are processed through non-European systems, and this share is steadily increasing. Moreover, 13 out of 21 eurozone countries lack a national card scheme, and more than half of the states have no proprietary e-commerce solutions.
According to the regulator's calculations, a well-designed digital euro — with strict holding limits and a zero interest rate — would not pose a threat to banking liquidity or financial stability. On the contrary, it could become an anchor of trust in a context where private stablecoins are taking over the functions of money.
As a reminder: on July 14, the ECB selected 36 banks and payment companies for pilot testing of the digital euro. The operational phase of the project will begin in the second half of 2027 and last 12 months.
My analysis: The ECB's statements are not just bureaucratic rhetoric, but a clear signal to the market. Banks are indeed vulnerable: stablecoins offer instant settlements and yields that traditional deposits cannot provide. If the EU does not accelerate the rollout of the digital euro, we risk seeing private stablecoin issuers de facto become the new "central banks" for retail users. The question is not whether an outflow will occur — it has already begun. The question is whether regulators will manage to seize the initiative in time.