ECB's Cipollone: Rising Stablecoin Use May Hit Bank Deposits

ECB Executive Board member Piero Cipollone said July 17 that rising stablecoin use could cut retail deposits at commercial banks. In a speech on the digital euro, he framed the risk as part of a wider shift to digital payments. Stablecoin adoption is a direct pressure point for bank funding, he said.

The ECB has been developing the digital euro since 2021. A decision on issuance is expected in the coming years. Cipollone described the digital euro as a way to preserve public access to central-bank money in an increasingly digital economy.

No specific stablecoin was named in the speech. The remarks come as regulators globally consider how private digital currencies interact with the traditional banking system.