In an article published on the European Central Bank (ECB) blog this Friday, directors Piero Cipollone (Member of the Executive Board) and Frank Elderson (Vice-Chairman of the Supervisory Board) pointed out that stablecoins are increasingly challenging traditional banking in Europe.
The title text is Digital euro: an opportunity for banks (Digital Euro: An Opportunity for Banks) emphasizes that the digitalization of payments is also being driven by actors other than banks, and explicitly mentions stablecoins as one of the threats.
“If you use stablecoins, you could lose out on fees, data, and stable retail deposits,” the authors directly state. According to the analysis, Banks already transfer fee income through international schemes Cards are lost, data is lost, and in some cases, you can even experience losses with big tech mobile payment solutions.
Stablecoins will further exacerbate this trend. By not relying on traditional banking infrastructure, Acquire a portion of the retail business and reduce the deposit base It functions as a stable source of financing. In the face of this scenario, Cipollone and Elderson defend a digital euro as a strategic opportunity.
Compared to the risk of losing business, data, and deposits with stablecoins, a digital euro will allow banks to offer payment services that meet the changing needs of customers in the digital age, ensuring that banks receive fair compensation, reduce fees, and retain personal deposits as an important source of funding.
ECB board members Mr. Cipollone and Mr. Elderson.
This article does not describe the digital euro as a competitor to banks; Europe’s common infrastructure enables innovation and competition. On a continental scale using non-banks and stablecoins.
In this way, the ECB seeks to strengthen Europe’s payment autonomy and maintain its fiscal resilience. The Digital Euro Project has entered the preparatory stage from 2023 after a research stage that began in 2021.
The article does not go into technical details or specific deadlines, but reiterates that the aim is to bring central bank funds into the digital age without changing the central role of commercial banks.
As reported by CriptoNoticias, against the backdrop of global competition and advances in alternative payment methods, the ECB’s position emphasizes that a digital euro could become an important instrument for maintaining the stability of the European financial system in the face of advances in stablecoins.
The authors conclude that this work is “crucial for Europe’s strategic autonomy and resilience.”
The new euro, which is currently under development, is one of the most popular central bank digital currencies (CBDCs), along with China’s digital yuan. The above is in contrast to, for example, the policy of the United States, a country that has banned the issuance of this type of currency, arguing that: Control and surveillance risks to people.
(Tag Translation) Europe
