ECB's Cipollone says digital euro poses negligible impact on banks

ECB board member Piero Cipollone said a digital euro would have only a limited effect on banks and financial stability while helping strengthen European payments autonomy and reduce reliance on non-European payment systems and stablecoins.

Summary

European Central Bank Executive Board member Piero Cipollone said the digital euro would have a negligible or minimal effect on banks and would not threaten financial stability. He also said the project could support the competitiveness of European lenders and strengthen Europe’s payments sovereignty by reducing dependence on non-European payment systems and stablecoins, crypto tokens designed to hold a fixed value.

Terms & Concepts
  • digital euro: Proposed digital form of the euro issued by the European Central Bank.
  • central bank digital currency: State-issued digital form of money.
  • stablecoins: Crypto tokens designed to maintain a fixed value, often pegged to a currency.