ECB Warns of Bank Deposit Outflows to Stablecoins

Piero Cipollone, a member of the European Central Bank (ECB) Executive Board, expressed concerns that the increasing popularity of stablecoins may result in reduced retail deposits at banks. This warning was delivered during the annual meeting of Federcasse.

— European Central Bank (@ecb) July 17, 2026

Cipollone noted that banks are already experiencing diminished revenue from fees and payment data as mobile services gain traction.

"If the use of stablecoins increases in the future, banks will also lose retail deposits," he stated.

In light of these challenges, he advocated for the implementation of Central Bank Digital Currencies (CBDCs) to ensure that public money retains its significance in digital transactions and to keep banks engaged within the payment framework. He highlighted the necessity for the EU to establish its own infrastructure, as currently, two-thirds of card payments are processed by non-European systems, a figure that continues to rise.

Notably, 13 of the 21 countries in the eurozone lack a national card scheme, and over half do not have an internal e-commerce solution. The ECB believes that a digital euro, designed with specific limitations and no interest, would not threaten bank liquidity or financial stability.

Additionally, on July 14, the ECB announced the selection of 36 banks and payment firms for a pilot project, which is set to commence its operational phase in the latter half of 2027 and will extend for a year.