ECB: Cipollone says stablecoins could put pressure on the euro; countermeasures should be adopted

"Stablecoins appear to be filling the gaps that have opened up in the international payments market following the reduction in the number of country pairs linked by correspondent banks, which, according to SWIFT data, fell by 29 per cent between January 2011 and December 2022. If dollar-denominated stablecoins were to take on a substitute role, the euro’s share of global export invoicing – currently over 40% and on a par with that of the dollar – could come under pressure.” This was highlighted by Piero Cipollone, a member of the ECB’s Executive Board, when discussing the risks to monetary sovereignty arising from the introduction of new technologies.

"The Eurosystem has therefore also taken measures in this area," he noted - “We are further expanding the interconnections between the TARGET Instant Payment Settlement (TIPS) service and other instant payment systems, drawing on the approximately 100 such infrastructures that exist worldwide. This will enable ordinary people and businesses to transfer funds quickly from their bank account to any other account holder in an interconnected country, in a transparent and cost-effective manner.”

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