ECB's Cipollone Warns Stablecoin Growth Would Drain Bank Deposits

According to Piero Cipollone, ECB Executive Board member, on Friday in Rome, wider adoption of stablecoins would drain retail deposits from commercial banks. "If the use of stablecoins increases in the future, banks will also lose retail deposits," Cipollone said. His warning follows Tether's exit from regulated EU exchanges after the stablecoin regulatory framework MiCA took full effect on July 1, which requires major stablecoins to hold 60% of reserves in European bank deposits.
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