Italy Warns of Crypto Risks Amid Trump’s Support Surge
The post Italy Warns of Crypto Risks Amid Trump’s Support Surge appeared on BitcoinEthereumNews.com. Trump’s crypto support contrasts with Italy’s cautious stance. Digital assets’ ties with finance threaten global stability. Stablecoins’ reliance on U.S. bonds raises systemic concerns. The Bank of Italy is worried about the growing importance of the cryptocurrencies as they consider the digital currencies a threat to financial stability.The advisory emerges amidst a growing divergence in global financial perspectives, meanwhile There is a growing trend of President Donald Trump of the United States aligning himself with the bitcoin industry. The first Financial Stability Report of the year was published by the Bank of Italy on April 28, 2025. In it, the risks that are related to digital assets were described. The report dubs the inherent volatility of cryptocurrencies and how they are emerging as a large part of conventional finances, particularly in the US. Bank of Italy Flags Crypto Volatility Concerns The Bank of Italy’s report points to the rapid rise of Bitcoin and other digital assets as a source of instability. In the case of these assets, high price fluctuations are very risky for the investors, and for the financial system in general, it says. Furthermore, the report presents how crypto is increasingly becoming linked with the real economy, and with established financial institutions. The growing integration of this exposure, especially as it spreads from nonfinancial companies and exchange traded funds (ETFs) to pure play crypto firms, may make systemic risk greater. The report also looked at stablecoins, which make use of the U.S. dollar very frequently as the peg. However, if these assets are to become systemic, their reliance on U.S. government bonds as backing could in fact introduce wider financial vulnerabilities. Furthermore, the Italian central bank too expressed its governance concerns regarding the crypto sector. The study identified other risk factors such as the concentration of power among…
The post Italy Warns of Crypto Risks Amid Trump’s Support Surge appeared on BitcoinEthereumNews.com.
Trump’s crypto support contrasts with Italy’s cautious stance. Digital assets’ ties with finance threaten global stability. Stablecoins’ reliance on U.S. bonds raises systemic concerns. The Bank of Italy is worried about the growing importance of the cryptocurrencies as they consider the digital currencies a threat to financial stability.The advisory emerges amidst a growing divergence in global financial perspectives, meanwhile There is a growing trend of President Donald Trump of the United States aligning himself with the bitcoin industry. The first Financial Stability Report of the year was published by the Bank of Italy on April 28, 2025. In it, the risks that are related to digital assets were described. The report dubs the inherent volatility of cryptocurrencies and how they are emerging as a large part of conventional finances, particularly in the US. Bank of Italy Flags Crypto Volatility Concerns The Bank of Italy’s report points to the rapid rise of Bitcoin and other digital assets as a source of instability. In the case of these assets, high price fluctuations are very risky for the investors, and for the financial system in general, it says. Furthermore, the report presents how crypto is increasingly becoming linked with the real economy, and with established financial institutions. The growing integration of this exposure, especially as it spreads from nonfinancial companies and exchange traded funds (ETFs) to pure play crypto firms, may make systemic risk greater. The report also looked at stablecoins, which make use of the U.S. dollar very frequently as the peg. However, if these assets are to become systemic, their reliance on U.S. government bonds as backing could in fact introduce wider financial vulnerabilities. Furthermore, the Italian central bank too expressed its governance concerns regarding the crypto sector. The study identified other risk factors such as the concentration of power among…
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