ECB Selects 36 Payment Providers for Digital Euro Pilot as Stablecoin Threat to Bank Deposits Looms

According to Piero Cipollone, European Central Bank Executive Board member, widespread stablecoin adoption could erode commercial banks' retail deposit base in Europe, he said on Friday (July 17) in a speech to Italy's Federation of Cooperative Credit Banks in Rome. Cipollone noted that banks are already losing payment fees and transaction data to mobile payment providers. The digital euro would help preserve banks' role in the payments ecosystem, he added. On Tuesday, the ECB selected 36 payment service providers for a 12-month digital euro pilot due to begin in the second half of 2027, with a potential issuance decision coming as early as 2029.
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