ECB Warns Stablecoins May Drain Bank Deposits as Digital Euro Pilot Launches in 2027

According to ECB board member Piero Cipollone on Friday, stablecoin growth could strip European banks of retail deposits. He noted that two-thirds of card payments in the euro area already route through non-European payment schemes, with 13 of 21 eurozone countries lacking their own national card schemes.

The ECB named 36 payment service providers—including Deutsche Bank, UniCredit, and Revolut—for a digital euro pilot starting in the second half of 2027, following a European Parliament vote of 416 to 169 to begin formal legislative negotiations. Lawmakers are targeting a deal by end of 2026, with first issuance eyed for 2029.