ECB Official Warns Stablecoins Could Pull Deposits From Banks

European Central Bank board member Piero Cipollone has outlined what he described as a three-layer threat that banks face from the growth of digital payments, according to reporting by Decrypt.

Among the concerns raised is the possibility that stablecoins could draw deposits away from traditional banks. Cipollone presented the digital euro as the structural answer to these pressures, Decrypt reported.

The warning comes as banks weigh their options across competing forms of digital money, including stablecoins, tokenised deposits and central bank digital currencies (CBDCs). Industry coverage from Finextra has framed the debate around whether banks are prepared for digital money, and what profitable roles they might play in the shift. That includes questions over the impact of digital currency on infrastructure, settlement and control.