The ECB warns: stablecoins threaten bank deposits and the EU's sovereignty in payments
The stablecoin market continues to gain momentum, and this is beginning to seriously worry European regulators. Piero Cipollone, a member of the Executive Board of the European Central Bank (ECB), made a resonant statement during the annual meeting of the Italian Federation of Cooperative Credit Banks (Federcasse): the mass adoption of stablecoins could trigger a significant outflow of retail deposits from traditional banks.
Cipollone emphasized that the banking sector is already under pressure from mobile payment services, which are eroding their fee income and control over payment data. However, with the growing popularity of stablecoins, the threat becomes more fundamental—it is now about the direct withdrawal of the deposit base. According to him, if this trend intensifies, banks risk losing one of their key sources of funding.
In this context, Cipollone once again highlighted the digital euro (CBDC) as a strategic tool that will preserve the role of public money in the era of digital payments while simultaneously keeping banks within the payment ecosystem. He noted that the project is critically important for the EU's payment sovereignty: currently, two-thirds of all card transactions in the European Union are processed through non-European systems, and this share is steadily growing.
ECB analysts have also identified a serious infrastructure gap: 13 out of 21 countries in the currency bloc lack a national card scheme, and more than half of the states have no proprietary e-commerce solutions. The developers of the digital euro have taken these risks into account: according to the regulator's calculations, the introduction of a digital currency with strict holding limits and a zero interest rate will not pose a threat to bank liquidity or financial stability.
As a reminder, on July 14, the ECB already selected 36 banks and payment companies to participate in the pilot project. The operational phase will begin in the second half of 2027 and will last 12 months.
My analysis: Cipollone's statements are not just a warning but a clear signal to the market. The ECB recognizes that stablecoins, especially those backed by the dollar, not only undermine the banks' deposit base but also call into question the monetary sovereignty of the eurozone. The digital euro here acts not so much as an innovation but as a protective mechanism. However, the key question is whether it can offer users the same liquidity and convenience as leading stablecoins without turning into a tool of total control. The market will get the answer in 2027.