GlobalFinancialSecurity

The Bank of Italy warned of the increasing systemic risks posed by the cryptocurrency sector, emphasizing that the expansion of this sector without clear oversight threatens the stability of the global financial system. This warning came in a recently published report, where the bank noted that the growing reliance on cryptocurrencies such as Bitcoin and Ethereum, along with the emergence of decentralized financial platforms, could lead to "financial bubbles" that threaten traditional banks. The bank also expressed concern over what it described as "excessive concentration of power" in the hands of fintech companies that have strong ties to the Trump administration, which the report described as "excessively open" to this sector without imposing necessary controls.

The report indicated that the loose regulatory environment under the Trump administration may allow speculators to exploit loopholes to achieve massive profits at the expense of economic stability. The bank warned that this trend could contribute to the creation of a parallel financial system that operates outside traditional banking supervision, opening the door for money laundering and financing illegal activities. The Bank of Italy concluded its report by calling for urgent international coordination to establish a global regulatory framework that ensures a balance between innovation and financial security.

#CryptoRisks $BTC
#BankOfItalyWarning
#TrumpAndCrypto
#FinancialStability
#decentralizedfinance
#RegulatoryConcerns
#BitcoinAlert
#SystemicThreat
#CryptoRegulation
#GlobalFinancialSecurity