Bank of Italy Flags Bitcoin and Stablecoins as Emerging Threats to Financial Stability

In its April 2025 Financial Stability Report , the central bank underscored the sharp volatility of cryptocurrencies—particularly Bitcoin—as a significant threat. It emphasized that as digital assets become increasingly intertwined with traditional finance and the real economy, the potential fallout from their price swings could extend far beyond individual investors.

“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,”

the report stated.

The report also criticized the growing trend of non-financial corporations acquiring Bitcoin, suggesting that such moves—often driven by expectations of boosting share prices—expose companies to unstable market dynamics. The report indirectly referenced companies like MicroStrategy, which began accumulating Bitcoin in 2020, paving the way for others such as Semler Scientific, Metaplanet, and GameStop to follow suit.

Stablecoins were another focal point of concern. The Bank of Italy cautioned that dollar-pegged tokens if allowed to become systemic, could create deep-seated vulnerabilities within the global financial system. It warned that the increasing use of U.S. Treasury securities to back stablecoins could amplify risks, especially in the event of disruptions in either the tokens themselves or the underlying bonds.

These warnings echo remarks made just days earlier by Italy’s Minister of Economy and Finance, Giancarlo Giorgetti. Speaking on the risks posed by U.S. dollar-backed stablecoins, Giorgetti described U.S. policy in this area as more threatening than President Donald Trump’s trade tariffs. He advocated for stronger support of the euro in the global digital economy and highlighted the development of a Digital Euro as a strategic move to reduce Europe’s dependency on foreign digital currencies.

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