The Bank of Italy has issued a warning about Bitcoin and other digital assets as emerging risk factors in the April 2025 Financial Stability Report, highlighting concerns not only for investors but for the entire financial system.
The report clearly states that the strong volatility of Bitcoin and other digital assets, along with the increasing interconnectedness between the cryptocurrency ecosystem, the traditional financial sector, and the real economy, could threaten financial stability. In particular, stablecoins and the fact that non-financial companies hold cryptocurrencies are two major concerns.
The Bank of Italy also points out the trend of non-financial companies accumulating Bitcoin — suggesting that this makes them vulnerable to price volatility, stemming from the 'belief that Bitcoin can support their stock prices.' Strategy (formerly MicroStrategy) was a pioneer in the Bitcoin accumulation wave since August 2020, paving the way for many other companies like Metaplanet, Semler Scientific, and GameStop to follow suit.
Regarding stablecoins, the report warns that if USD-pegged coins become systemic, they could pose broader risks to the financial market. An increasing reliance on U.S. government bonds to back stablecoins could create vulnerabilities in the system. The report warns that disruptions from stablecoins or the underlying bond market could 'have a ripple effect on other areas of the global financial system.'
This report was published just a few days after Italy's Minister of Economy and Finance, Mr. Giancarlo Giorgetti, warned against underestimating the allure of USD-pegged stablecoins. According to him, the U.S. digital currency policy poses even greater risks than President Donald Trump's tariff policy.
Mr. Giorgetti emphasized the need to strengthen the role of the euro on the international stage, while also stating that the development of a digital euro will play a key role in reducing dependence on foreign digital financial solutions.
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