ECB exec renews push for digital euro to counter US stablecoin growth
The European Central Bank is intensifying its warnings over stablecoin adoption, with one of its top officials calling for a digital euro to curb the influence of US dollar-pegged stablecoins across the continent.
ECB executive board member Piero Cipollone has penned another article highlighting concerns over the growing popularity of US dollar stablecoins, arguing that launching a central bank digital currency (CBDC) could help preserve the eurozone’s monetary sovereignty.
A potential digital euro “would limit the potential for foreign currency stablecoins to become a common medium of exchange within the euro area,” Cipollone wrote in a statement published April 8 on the ECB’s official website.
The remarks follow a string of similar public statements from Cipollone, who has been a vocal advocate for a digital euro as a strategic response to the dominance of dollar-backed stablecoins in Europe.
A “public-private partnership to retain sovereignty”
In the latest piece, Cipollone reiterated that excessive reliance on foreign providers — including stablecoins as well as international card schemes — compromises the monetary sovereignty of Europe.
“It also underscores the urgent need for a digital euro. Failing to act would not only expose us to significant risks but also deprive us of a great opportunity,” the central banker said.
ECB’s executive board member Piero Cipollone. Source: Bloomberg
Cipollone also cited concerns about the United States’ increasingly crypto-friendly stance under the current administration, including efforts to promote dollar-based stablecoins globally.
Related: Lawmaker alleges Trump wants to replace US dollar with his stablecoin
“They could potentially result not just in further losses of fees and data, but also in euro deposits being moved to the US and in a further strengthening of the role of the dollar in cross-border payments,” he said, adding:
“Faced with these challenges, we need a public-private partnership to retain our sovereignty. The digital euro — as a sovereign European means of payment based on EU legislation — would be the cornerstone of this partnership.”
ECB wants to promote cash but can’t do it online
Cipollone also highlighted the “vital role of cash” in ensuring financial inclusion and resilience, stating that cash remains a “cornerstone of the European financial system” and is its only sovereign means of payment.
However, a growing preference for digital payments has limited the use of cash amid the rapid growth of online shopping, which now accounts for one-third of European retail transactions, he said.
“Cash cannot be used online, and it is often not possible to pay using a European payment service, meaning we need to rely on non-European payment systems,” Cipollone added.
“The time to act is now,” he said. “Making progress on both the digital euro regulation and the regulation on the legal tender status of cash has become urgent if we are to increase our resilience to possible disruptions and reverse our ever-increasing dependence on foreign companies.”
Despite the ECB’s ongoing efforts, the proposed digital euro has faced criticism and skepticism among European consumers, especially around data privacy concerns.
An ECB working paper on the digital euro published in March showed that European consumers are not interested in adopting a digital euro, with many seeing little value in the potential CBDC.
Magazine: Stablecoin for cyber-scammers launches, Sony L2 drama: Asia Express
The government has vowed to push for a “major new crackdown” on people smuggling gangs with a £100m cash boost for border security.
The investment will support the pilot of the new “one in, one out” returns agreement between the UK and France, and other efforts to crack down on small boat crossings.
Home Secretary Yvette Cooper said this new funding will “strengthen” the government’s “serious and comprehensive plan” to dismantle the business model of criminal gangs smuggling migrants across the Channel.
But the Conservatives have claimed the cash injection will make “no real difference”, with shadow home secretary Chris Philp branding the move a Labour “gimmick” and a “desperate grab for headlines”.
The funding will pay for up to 300 new National Crime Agency (NCA) officials, “state-of-the art” detection technology and new equipment to “smash the networks putting lives at risk in the Channel”, ministers say.
It will also allow the Border Security Command, the NCA, the police and other law enforcement agency partners to “strengthen investigations targeting smuggling kingpins and disrupt their operations across Europe, the Middle East, Africa and beyond”.
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July: 25,000 migrants have crossed Channel
The new investment comes as official figures show more than 25,000 people have arrived on small boats so far in 2025 – a record for this point in the year.
Ms Cooper said: “In the last 12 months, we have set the foundations for this new and much stronger law enforcement approach – establishing the new Border Security Command, strengthening the National Crime Agency and UK police operations, increasing Immigration Enforcement, introducing new counter terror style powers in our Border Security Bill, and establishing cooperation agreements with Europol and other countries.
“Now this additional funding will strengthen every aspect of our plan, and will turbo-charge the ability of our law enforcement agencies to track the gangs and bring them down, working with our partners overseas, and using state-of-the-art technology and equipment.
“Alongside our new agreements with France, this will help us drive forward our Plan for Change commitments to protect the UK’s border security and restore order to our immigration system.”
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The £100m investment will also support new powers to be introduced when the Border Security, Asylum and Immigration Bill becomes law, the Home Office said.
This includes the introduction of a UK-wide offence to criminalise the creation and publication of online material that promotes a breach of immigration law, such as the advertisement of small boat crossings on social media.
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July: Hundreds gather for protest outside ‘migrant’ hotel
Research suggests about 80% of migrants arriving to the UK by small boat used internet platforms during their journey – including to contact agents linked to smuggling gangs.
While it is already illegal to assist illegal immigration, ministers hope the creation of a new offence will give police more powers and disrupt business models.
Mr Philp accused the Labour government of having “no serious plan, just excuses, while ruthless criminal gangs flood our borders with illegal immigrants”.
He said: “The British public deserves real action, not empty slogans and tinkering at the edges.”
Efforts to bring Gazan children to the UK for urgent medical treatment are set to be accelerated under new government plans.
Under the scheme, reportedly set to be announced within weeks, more injured and sick children will be treated by specialists in the NHS “where that is the best option for their care”.
It has been suggested that up to 300 children could arrive in the UK from Gaza.
A parent or guardian will accompany each child, as well as siblings if necessary, and the Home Office will carry out biometric and security checks before travel, the Sunday Times has reported.
It is understood this will happen “in parallel” with an initiative by Project Pure Hope, a group set up to bring sick and injured Gazan children to the UK privately for treatment.
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A 15-year-old boy from Gaza brought to the UK for urgent medical treatment this week has told Sky News of his joy and relief. Majd lost part of his face as well as his entire jaw and all his teeth in a tank shell explosion.
A government spokesperson said: “We are taking forward plans to evacuate more children from Gaza who require urgent medical care, including bringing them to the UK for specialist treatment where that is the best option for their care.”
More than 50,000 children are estimated to have been killed or injured in Gaza since October 2023, according to Unicef.
So far, three children have arrived in the UK for medical treatment with the help of the charity Project Pure Hope.
Around 5,000 have been evacuated in total, with the majority going to Egypt and Gulf countries.
Sir Keir Starmer said last week that the UK was “urgently accelerating” efforts to bring children over for treatment.
The government has also pledged another £1m to help the World Health Organisation in Egypt provide medical support to evacuated Gazans.
The prime minister told the Mirror: “I know the British people are sickened by what is happening.
“The images of starvation and desperation in Gaza are utterly horrifying. We are urgently accelerating efforts to evacuate children from Gaza who need critical medical assistance – bringing more Palestinian children to the UK for specialist medical treatment.”
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Around 100 MPs have signed a letter urging the government to fast track the scheme.
Labour MP Stella Creasy, who co-ordinated the letter, said: “The commitment we all share to help these children remains absolute and urgent – with every day, more are harmed or die, making the need to overcome any barriers to increasing the support we give them imperative.
“We stand ready to support whatever it takes to make this happen and ask for your urgent response.”
Meanwhile, Project Pure Hope has been campaigning for months to create a scheme which would allow for the evacuation of 30 to 50 children.
The charity has raised the money to bring the children and their families to the UK, and cover their medical costs, privately.
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