{"id":128235,"date":"2025-04-29T22:16:13","date_gmt":"2025-04-29T22:16:13","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=128235"},"modified":"2025-04-29T22:16:13","modified_gmt":"2025-04-29T22:16:13","slug":"growth-of-crypto-poses-risks-to-investors-financial-stability-bank-of-italy","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=128235","title":{"rendered":"Growth of crypto poses risks to investors, financial stability \u2014 Bank of Italy"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe Bank of Italy identified Bitcoin and other digital assets as emerging risk factors in a recent report, citing concerns for both investors and the financial system.<br \/>\nIn its April 2025 Financial Stability Report, the Bank of Italy flags crypto volatility and rising integration with the broader economy, singling out stablecoins and non-financial firms\u2019 crypto exposure as key concerns.<br \/>\n&#8220;The strong growth of Bitcoin and of other crypto-assets with high price volatility means risks not only for investors but also potentially for financial stability, given the growing interconnections between the digital asset ecosystem, the traditional financial sector and the real economy,\u201d the report notes.<br \/>\nExcerpt from the Bank of Italy\u2019s Financial Stability Report. Source: Bank of ItalyThe Bank of Italy\u2019s report also addressed the trend of non-financial corporations holding Bitcoin, stating that it exposes them to \u201cmarked price volatility\u201d driven by \u201cthe belief that Bitcoin can support their share prices.\u201d<br \/>\nStrategy (formerly MicroStrategy) helped popularize the corporate purchase of Bitcoin, beginning its acquisitions in August 2020. Since then, several companies have followed its lead, including Metaplanet, Semler Scientific, and GameStop.<br \/>\nThe Bank of Italy also addressed stablecoins in its report, noting potential risks if dollar-pegged tokens were to become systemic. It suggested that increased reliance on US government bonds to back these assets could introduce broader financial vulnerabilities. According to the report, disruptions in either the stablecoins or the underlying bonds could have \u201crepercussions for other parts of the global financial system.\u201d<br \/>\nThe report comes just a few days after Giancarlo Giorgetti, the country\u2019s minister of economy and finance, warned that the appeal of US dollar stablecoins should not be underestimated. According to Giorgetti, US stablecoin policies are more dangerous than US President Donald Trump\u2019s tariffs.<br \/>\nRelated: Italy scales back plans to hike crypto tax rate: Report<br \/>\nGiorgetti, in his speech, highlighted the need to enhance the euro\u2019s position on the global stage, noting that the development of the Digital Euro will play a crucial role in reducing reliance on foreign digital solutions.<br \/>\nRelated: Italy\u2019s largest bank enters crypto market with $1M Bitcoin investment<a href=\"https:\/\/cointelegraph.com\/news\/crypto-risks-investors-financial-stability-bank-of-italy?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe Bank of Italy identified Bitcoin and other digital assets as emerging risk factors in a recent report, citing concerns for both investors and the financial system. In&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128235"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128235"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128235\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128235"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}