The European Central Bank (ECB) has raised concerns that widespread stablecoin adoption could undermine the retail deposit base of commercial banks, potentially reshaping the competitive dynamics of the traditional banking sector. ECB Executive Board member Piero Cipollone highlighted these risks while emphasizing the importance of the digital euro in maintaining the role of public money. In response, the ECB has initiated a 12-month digital euro pilot project, selecting 36 payment service providers, including banks, fintechs, and payment firms, to participate. The pilot, set to commence in the latter half of 2027, aims to evaluate the feasibility of a retail central bank digital currency (CBDC) within the eurozone, ensuring banks remain integral to the payment ecosystem and adapt to evolving customer needs.