The main dishes to remember:
- The Italian Bank warns that the integration of the crypto in traditional finance can trigger systemic risks.
- The concerns increase as President Trump’s administration adopts regulations and promotes the adoption of cryptography.
- Although the central bank warning, the largest bank in Italy continues to put money in Bitcoin.
Link of market dangers upwarding acceptance and political support, especially in the United States under President Donald Trump, the Italian Central Bank has issued a striking warning on the potential impact of cryptocurrencies on global financial institutions. The Italian financial industry seems to be divided despite the warnings; Large banks advance with the investments of cryptocurrencies.
Read more: Italy tightens the surveillance of cryptocurrencies: protect markets or limit innovation?
The growing relationship between crypto and conventional finance
April 2025 Financial stability report of the Italian Bank Highlights how the increase in interconnection between digital assets and traditional financial institutions could lead to market volatility. Although recent political events – especially in the United States – have increased attention, this concern is not new.
The Central Bank underlined in its report that cryptographic values climbed after the re -election of Donald Trump, highlighting the positive attitude of the administration towards the digital asset sector. The study implies that such a political alignment can promote too high risk taking between financial intermediaries and increase the general market exposure to very volatile assets.
“If these instruments should become more closely linked to the traditional financial system, there could be greater vulnerabilities for markets and intermediaries,” noted the bank.
The report also warned that the 2.75 billions of dollars on the world cryptography marketWith Bitcoin which represents more than 60% and stablecoins only 9%, has reached a level of maturity which poses macroeconomic threats when associated with lax surveillance.
Read more: The biggest bank in Italy takes its first big step in Bitcoin with a purchase of $ 1 million
In the United States, political changes increase red flags
THE Pro-Crypto approach to the Trump administration causes discomfort among European financial regulators. US regulatory authorities have reduced application procedures against cryptographic companies and have even organized activities related to crypto in the White House in recent months.
This tour has increased concerns about the concentration of the power of cryptocurrency in a small number of American companies. The Italian Bank believes that 75% of the main digital asset companies operate in the United StatesThe rest distributed through China, Canada and the United Kingdom. The euro zone has a minimum representation.
“These entities are not subject to specific governance requirements and may therefore have significant conflicts of interest,” said the report.
Italian regulators also targeted the rise Bitcoin -based negotiated funds (ETF) And business treasury bills adopting Bitcoin to increase stock prices – a practice popularized by companies like Microstrategy. The bank believes that this trend could expose non -financial companies to undue volatility.
Stablecoins present risks of sovereignty and liquidity
The stablescoins in Pius in dollars are particularly under survey such as USDT (TETHER) and USDC (circle). Although intended to preserve a 1: 1 ratio with the US dollar, these assets are mainly supported by short -term American treasury bonds. A large redemption of Stablecoins, said the Bank of Italy, could trigger the rapid liquidation of American debt bonds, which therefore upsets the bond markets.
“A widespread race on buyouts could trigger a fire sale of US government bonds and shake the world markets,” said research.
Push for the digital euro
The European Central Bank (ECB) has accelerated its blockchain -based payment system to compensate for the hegemony of digital assets supported in dollars. Available to help a digital currency from the central bank (CBDC) and to reduce EU’s dependence on the Stablescoin foreign infrastructure, the project announced in April would take place in two stages.
Intersa Sanpaolo, the largest commercial bank in Italy, welcomes digital assets despite the strong warnings from the Italian Bank. The bank revealed in January 2025 that it bought 11 bitcoins, assessing around 1 million euros. He also subscribed Italian’s first blockchain link in July 2024 and launched Crypto-Spot trading From its owner commercial office in November.
The volatility and governance of cryptography are not resolved
The main message of the bank remains coherent: Volatility, governance and tangle of the market are growing threats. He considers bitcoin and speculative crypto assets not only as a risk for individual investors but also as potential triggers for Wider systemic instabilityEspecially when it is linked to business reports or initiatives supported by the state.
While the global financial landscape moves under the influence of the political support and the enthusiasm of investors, the report of the Bank of Italy highlights a simple but urgent message: The crypto is no longer isolated – and its risks are no longer theoretical.
