The stablecoin market is becoming a serious competitor to the traditional banking system. European Central Bank (ECB) Executive Board member Piero Cipollone issued an alarming statement: the mass adoption of digital assets pegged to fiat currencies could trigger a significant reduction in retail deposits at EU banks. This is not just a hypothesis — it is a direct challenge to the current model of financial intermediation.
Payment infrastructure under threat
According to Cipollone, European banks are already losing fee income and control over payment data due to the expansion of mobile services. If stablecoins continue to gain momentum, the next stage will be an outflow of liquidity from deposit accounts. This will weaken banks' lending capacity and undermine their role in the economy.
In response to these risks, the ECB is promoting the digital euro (CBDC) as a tool to preserve the sovereignty of public money. Cipollone emphasized that the project will not only keep banks in the payment ecosystem but also create an independent European infrastructure. Currently, two-thirds of all card transactions in the EU are processed through non-European systems, and this share is steadily growing. In 13 of the 21 currency bloc countries, there is no national card scheme, and more than half of the states lack their own e-commerce solutions.
Safe design for financial stability
The regulator assures that the digital euro is designed with all risks in mind. Built-in holding limits and the absence of interest accrual should neutralize the threat to banking liquidity. This is a fundamental difference from stablecoins, which could trigger a "digital bank run" during crises.
Recall that on July 14, the ECB selected 36 banks and payment companies to participate in the pilot project. The operational phase will begin in the second half of 2027 and last 12 months. This is not just a test — it is a bid to reshape the entire payment architecture of Europe.
My expert commentary: Cipollone's statement is not just a warning but a clear signal to the market. The ECB recognizes that stablecoins have already become a "Trojan horse" for the fiat system. If regulators do not offer a competitive digital euro with a user-friendly experience, the deposit outflow will accelerate. The stakes are high: at risk are not only banks' revenues but also control over money issuance in the digital age.