Piero Chipolone: The popularity of stablecoins weakens the deposit base of banks, while the digital euro maintains its currency status

Piero Chipolone, a member of the Executive Committee of the European Central Bank, stated that the widespread adoption of stablecoins weakens the retail deposit base of commercial banks, while digital payments reshape the banking industry and exacerbate Europe's dependence on non European payment infrastructure. Piero Chipolone pointed out that banks are facing a decline in payment fee income and loss of transaction data, and the popularity of stablecoins has increased the pressure on commercial bank deposit outflows. Piero Chipolone emphasized that the digital euro maintains its status as a public currency and ensures the participation of banks in the payment ecosystem. The European Central Bank has selected 36 payment service providers to participate in a 12-month pilot project for the digital euro, which is scheduled to launch in the second half of 2027. （Cointelegraph）