BREAKING: 🇪🇺 European Central Bank warns stablecoins are draining bank deposits.
European banks are losing the payments war in installments. First came mobile apps, which took their fees and transaction data, then digital payments and startups took even more control.
Executive board Piero Cipollone says When users use mobile payments, banks typically pay higher fees than those associated with debit cards and often do not receive any information about the payment, so they lose both fees and data.
Cipollone is worried that stablecoin adoption may render cash deposits irrelevant. Mobile payments cost banks fees and data; stablecoins could cost them the deposit base they rely on to make loans.
European banks are losing the payments war in installments. First came mobile apps, which took their fees and transaction data, then digital payments and startups took even more control.
Executive board Piero Cipollone says When users use mobile payments, banks typically pay higher fees than those associated with debit cards and often do not receive any information about the payment, so they lose both fees and data.
Cipollone is worried that stablecoin adoption may render cash deposits irrelevant. Mobile payments cost banks fees and data; stablecoins could cost them the deposit base they rely on to make loans.