The Bank of Italy has highlighted the risks associated with the growth of cryptocurrencies in its recent report, raising concerns for investors and financial stability. In the April 2025 Financial Stability Report, the Bank of Italy pointed out the volatility of cryptocurrencies like Bitcoin and their increasing integration into the broader economy, particularly flagging stablecoins and non-financial firms’ exposure to crypto as major concerns. The report emphasized the potential risks not only for investors but also for overall financial stability due to the interconnectedness between the digital asset ecosystem, traditional financial sector, and real economy. The Bank of Italy also addressed the trend of non-financial corporations holding Bitcoin, cautioning about the price volatility they face driven by the belief that Bitcoin can boost their share prices. The report mentioned companies like Strategy (formerly MicroStrategy), Metaplanet, Semler Scientific, and GameStop that have ventured into corporate Bitcoin purchases. Furthermore, the Bank of Italy expressed concerns about stablecoins, especially if dollar-pegged tokens were to become systemic, suggesting that increased reliance on US government bonds to back these assets could introduce broader financial vulnerabilities. The report warned that disruptions in stablecoins or the underlying bonds could have repercussions on the global financial system. The report coincided with warnings from Giancarlo Giorgetti, Italy’s minister of economy and finance, who highlighted the dangers posed by US dollar stablecoins, comparing them to the threats of US President Donald Trump’s tariffs. Giorgetti stressed the importance of enhancing the euro’s global position and emphasized the development of the Digital Euro to reduce dependence on foreign digital solutions. Overall, the report underscores the evolving landscape of cryptocurrencies and the need for regulatory vigilance to mitigate potential risks to investors and financial stability in Italy.