Bank of Italy Sounds Alarm Over Crypto’s Rising Risks to Financial Stability
New report warns that stablecoins and corporate Bitcoin holdings could ripple through global markets
Rome Issues Financial Stability Warning Over Crypto Expansion
In a direct warning to global markets, the Bank of Italy has flagged the surging growth of Bitcoin, stablecoins, and digital assets as potential threats to financial stability, emphasizing their increasing entanglement with the real economy.
In its April 2025 Financial Stability Report, the central bank identified two growing concerns: the widespread use of dollar-pegged stablecoins and the trend of non-financial companies investing in Bitcoin. The report calls these developments a “source of systemic risk” if left unchecked.
“The strong growth of Bitcoin and other crypto-assets with high price volatility means risks not only for investors but also potentially for financial stability,” the Bank stated, pointing to rising interconnections between digital assets, traditional finance, and the broader economy.
Stablecoins Could Trigger Broader Market Disruption
Of particular concern is the rise of dollar-pegged stablecoins, which the Bank warns could become “systemically important”. As more of these coins are backed by U.S. Treasury bonds, any volatility in those underlying assets could spill over into other sectors of the financial system.
“Disruptions in either the stablecoins or the underlying bonds could have repercussions for other parts of the global financial system,” the report notes.
This echoes recent comments from Giancarlo Giorgetti, Italy’s Minister of Economy and Finance, who warned that stablecoin policy risk could rival—or even surpass—the threat of U.S. tariffs.
Bitcoin Holdings by Corporations Add Another Layer of Risk
The Bank also singled out the growing trend of non-financial firms investing in Bitcoin. Companies such as MicroStrategy (now Strategy), Metaplanet, Semler Scientific, and GameStop have added Bitcoin to their balance sheets in hopes of boosting shareholder value.
However, the Bank of Italy cautions that such behavior may be speculative and driven by price momentum, leaving firms vulnerable to sharp price fluctuations that could reverberate through stock markets and business operations.
Holding Bitcoin, the Bank warns, exposes companies to “marked price volatility”, with many doing so under the assumption it could support their share prices — a strategy it views as fraught with risk.
Global Echoes and Regulatory Uncertainty
The concerns raised in Rome are part of a growing global debate on how to regulate the intersection of crypto assets and traditional finance. As more institutions adopt crypto—either directly or through stablecoin exposure—regulators are scrambling to assess potential knock-on effects.
Whether crypto integration becomes a strength or a vulnerability for global markets may depend on how governments respond to these mounting warnings. What’s clear is that central banks like Italy’s are no longer sitting on the sidelines.
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