Italy’s central bank is sounding the alarm over the United States’ accelerating embrace of cryptocurrencies, warning that this shift could carry risks well beyond American borders.
In its latest financial stability report, the Bank of Italy expressed concern about the mounting influence of digital assets—particularly those with high volatility like Bitcoin—and their growing entanglement with conventional financial systems.
The report suggests that as crypto becomes more integrated with mainstream finance, the chances of broader market instability increase. The concern is especially pronounced following recent policy signals from Washington. Since President Trump’s return to office, the U.S. has moved quickly to craft a regulatory framework for the sector, including efforts to establish rules for stablecoins tied to the dollar.
Rome’s warning comes amid a sharp rise in crypto asset prices, a trend attributed in part to America’s friendlier stance toward the industry. While stablecoins have generally held their value, the broader crypto space remains unpredictable and prone to rapid swings.
Officials from the European Central Bank share the anxiety. Top figures from France and Finland have both cautioned against the normalization of crypto assets, with Finland’s Olli Rehn stating plainly that he views the U.S. direction as a cause for concern.
Italy’s central bank also highlighted a more specific risk tied to stablecoins: many of them rely on short-term U.S. government bonds to maintain their peg. A failure by a major issuer could spark a liquidation of those assets, potentially shaking the Treasury market and creating ripple effects across the global financial system.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
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