UniCredit CEO Calls Digital Euro 'Relatively Constructive' but Warns on Deposits
Andrea Orcel, CEO of UniCredit, said on March 18, 2026 that the launch of a digital euro would siphon off part of retail deposits — the banks' lowest-cost source of funding — and thereby weigh on liquidity and profit margins. He framed the project as "relatively constructive," signaling openness to the idea but warning that its mechanics could create material funding pressure for traditional lenders. The comment matters because design choices for a central bank digital currency can reshape bank balance sheets and funding models. Orcel’s measured stance suggests banks may engage with regulators to seek safeguards such as limits, tiering, or interest rules to mitigate deposit flight. Markets and policymakers will watch for concrete proposals from the ECB that balance digital-payments innovation with financial stability.