Growth of crypto poses risks to investors, financial stability — Bank of Italy
The Bank of Italy's April 2025 Financial Stability Report identifies Bitcoin and digital assets as emerging risks for investors and the financial system. Concerns include crypto volatility and increasing integration with the economy, particularly regarding stablecoins and non-financial firms' exposure to cryptocurrencies. The report highlights that the growth of Bitcoin poses risks to financial stability due to its interconnections with traditional finance. Non-financial corporations holding Bitcoin face significant price volatility, influenced by the belief that it can enhance share prices. The report warns about potential systemic risks from dollar-pegged stablecoins, particularly if they rely heavily on US government bonds, which could create broader financial vulnerabilities. Minister Giancarlo Giorgetti emphasized the dangers of US dollar stablecoins and advocated for strengthening the euro's global position through the development of a Digital Euro.
