European Central Bank (ECB) board member Piero Cipollone warns that growing stablecoin use could reduce bank deposits by shifting payments and value transfers away from traditional bank rails. In remarks cited by multiple outlets, Cipollone describes stablecoins as part of a broader “three-layer” set of risks that could affect banks as digital payments expand. He argues that if stablecoins are used widely for settlement and transfers, some customers and businesses may move funds out of deposits, affecting liquidity and funding conditions for banks.
Cipollone also advances the ECB’s “digital euro” as a structural response, saying it is designed to keep banks central to the payments system. The ECB’s position, as reflected in these reports, is that a regulated central-bank digital currency could provide a mainstream digital payment option while maintaining established roles for banks. The outlets emphasize that the warning centers on deposit risk from stablecoin adoption and that the proposed countermeasure is the digital euro framework rather than a direct ban or immediate restriction on stablecoins.
