[European Central Bank Warns: Stablecoin Adoption Could Erode Bank Deposit Base, Digital Euro Accelerates Development] Odaily Planet Daily News – Piero Cipollone, a member of the European Central Bank (ECB) Executive Board, stated that the widespread adoption of stablecoins could weaken the retail deposit base of commercial banks and alter the competitive landscape of the traditional banking system. Speaking on Friday at the Italian Cooperative Banks Association in Rome, Cipollone noted that digital payments are reshaping the banking industry while increasing Europe's reliance on non-European payment infrastructures. Currently, banks are already facing declining payment fee revenues and the loss of transaction data due to the rise of mobile payment service providers. With the further proliferation of digital asset payment tools such as stablecoins, commercial banks may face additional pressure from deposit outflows. Cipollone emphasized that the digital euro will help maintain the role of public money and ensure that banks continue to participate in the payment ecosystem while meeting the evolving financial needs of customers. "The digital euro can both preserve the role of public funds and ensure that banks maintain an important role in the payment system," Cipollone stated. This Tuesday, the European Central Bank selected 36 payment service providers to participate in a 12-month pilot project for the digital euro. Participants include banks, fintech companies, and payment enterprises. The pilot program is set to launch in the second half of 2027 and aims to test the feasibility of a retail central bank digital currency (CBDC) operating within the eurozone. The European Central Bank previously indicated that if relevant legislation and testing progress smoothly, the digital euro could be officially issued as early as 2029. (Cointelegraph)