A European Central Bank executive delivered a keynote speech in Brussels, warning that digital finance could become dominated by a few major providers. Piero Cipollone, a member of the ECB’s Executive Board, said “a single dominant platform and stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term with broad network effects” would have “serious consequences for Europe’s monetary sovereignty.”

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The comments come amid discussions in Europe over stablecoins and digital assets. The ECB has stressed that foreign stablecoin issuers “must face EU standards,” signaling its intention to ensure that emerging digital finance infrastructure operates under regulated, central bank-backed frameworks.

Tokenized Finance Requires Central Bank Settlement

The remarks align with the ECB’s work on tokenized financial markets. Cipollone noted that without a settlement framework based on central bank money, private digital assets could play a larger role in financial transactions.

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In response, the ECB is preparing to launch Pontes, an initiative designed to connect distributed ledger technology platforms used for tokenized assets with central bank money for settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term. The project is expected to move into its next phase later this year.

A separate initiative, Appia, is being developed as a longer-term effort to outline a European approach to tokenized finance.

The ECB just admitted that dollar stablecoins are a threat to European monetary sovereignty.

Piero Cipollone, a member of the ECB's Executive Board, gave a keynote today in Brussels laying out Europe's tokenized financial market strategy. The message was clear: if Europe doesn't… pic.twitter.com/ddRYhHjVuB

— TFTC (@TFTC21) March 23, 2026

€4 Billion Tokenized Bonds Issued Europe

Cipollone highlighted recent market activity to underline the shift. Around €4 billion worth of tokenized fixed-income instruments have been issued in Europe since 2021, including sovereign debt from European Union member states.

He also reiterated the ECB’s position on settlement assets, noting that central bank money remains the only form of money that does not carry credit risk. These remarks reflect the ECB’s broader effort to ensure that the euro area’s financial infrastructure relies on central bank-backed settlement rather than private alternatives.