The ECB has renewed its push for a digital euro to counter the growing dominance of US dollar-backed stablecoins in Europe. Piero Cipollone, an ECB executive board member, has raised concerns over the growing popularity of these stablecoins.

He argues that a central bank digital currency (CBDC) would protect the eurozone's monetary sovereignty. Cipollone argued that a digital euro would prevent foreign currency stablecoins from becoming widely used in the euro area.

He warns that Europe's reliance on foreign payment systems undermines its financial sovereignty. Concerns have arisen over the US's push for dollar-backed stablecoins.

ECB called for a public-private partnership to create a digital euro, preserving European monetary independence under EU law.

Despite these efforts, the digital euro faces opposition, particularly over concerns around data privacy and consumer adoption. ECB acknowledges that digital payments are becoming increasingly prevalent, especially for online transactions.