Bank of Italy Warns of Systemic Crypto Risks, Concentration of Power Under Trump
Italy's central bank, Banca d'Italia, expressed concerns about the growing integration of cryptocurrencies into traditional finance, citing potential threats to financial stability. The Financial Stability Report highlighted systemic risks associated with crypto volatility, regulatory gaps, and market contagion. The bank noted that the global crypto market reached $2.75 trillion by March, with Bitcoin comprising over 60% of that value. Increased U.S. government support for crypto under President Trump has raised alarms, particularly regarding ETFs and corporate treasuries holding Bitcoin. The report warned of conflicts of interest in firms primarily based in the U.S. and the risks posed by dollar-backed stablecoins to EU monetary sovereignty. Despite these concerns, Italy's largest bank, Intesa Sanpaolo, is actively engaging in crypto investments and blockchain initiatives. The Bank of Italy remains cautious but is exploring blockchain technology's potential.
