The Bank of Italy has raised significant concerns over the growing integration of cryptocurrencies into the traditional financial system, highlighting potential risks to both investors and overall financial stability. In its April 2025 Financial Stability Report, the central bank emphasized that the rapid expansion of Bitcoin and other volatile digital assets could pose systemic threats due to their increasing interconnections with conventional finance and the real economy.

One of the primary concerns raised is the tendency of non-financial organizations to invest in Bitcoin. The bank cautioned that such investments expose these companies to significant price volatility, often driven by speculative motives rather than fundamental financial strategies. This behavior not only jeopardizes the financial health of the companies involved but also contributes to broader market instability.

Source: Bank of Italy

Stablecoins, particularly those linked to the US dollar, were also studied. The Bank of Italy warned that if these digital tokens become systemic, they could introduce vulnerabilities into the financial system. The reliance on US government bonds to back stablecoins means that any disruptions in the bond market could have cascading effects, potentially impacting other sectors of the global economy.

These concerns align with statements from Italy's Minister of Economy and Finance, Giancarlo Giorgetti, who recently highlighted the risks associated with the growing appeal of US dollar stablecoins. He emphasized the importance of strengthening the euro's position globally, noting that the development of a Digital Euro could play a crucial role in reducing dependence on foreign digital currencies.

In response to these issues, the Bank of Italy recommends strong regulatory frameworks. Such measures aim to mitigate the risks posed by the rapid adoption of cryptocurrencies and ensure the stability and integrity of the financial system.