The ECB executive board is intensifying its campaign for the digital euro to counter the influence of U.S. stablecoins.
The European Central Bank is ramping up its warnings about the adoption of stablecoins, calling for the introduction of a digital euro to limit the influence of U.S. dollar-pegged digital currencies in Europe.
On April 8, ECB Executive Board member Piero Cipollone published a new article highlighting concerns over the growing popularity of U.S. dollar-denominated stablecoins, arguing that the launch of a central bank digital currency could help preserve the eurozone’s monetary sovereignty.
According to Cipollone, a potential digital euro “would limit the possibility that foreign-currency stablecoins become a common means of exchange within the euro area.” His remarks follow a series of similar interventions where Cipollone has positioned the digital euro as a strategic response to the dominance of dollar-based stablecoins in Europe.
In his latest statement, Cipollone reiterated that excessive reliance on foreign providers — including stablecoins and international payment networks — undermines Europe’s monetary sovereignty. The central banker stated:
“This also highlights the urgent need for a digital euro. Inaction would not only expose us to significant risks but would also deprive us of a major opportunity.”
Cipollone also expressed concerns about the increasingly crypto-friendly stance of the United States under the Trump administration, including efforts to globally promote dollar-based stablecoins.
“These could potentially lead not only to further losses of fees and data but also to a shift of euro-denominated deposits to the U.S. and a further strengthening of the dollar’s role in cross-border payments,” Cipollone warned, adding:
“In the face of these challenges, we need a public-private partnership to maintain our sovereignty. The digital euro — as a sovereign European means of payment based on EU legislation — would be the cornerstone of that partnership.”
Despite the ECB’s push, a study published in March showed that European consumers have shown little interest in adopting a digital euro.
