Bank of Italy Warns of Risks from Bitcoin and Stablecoins Threatening Financial Stability

The Bank of Italy has issued a warning concerning the growing influence of cryptocurrencies, including Bitcoin, on the financial system. The central bank’s April 2025 Financial Stability Report highlights the volatility associated with these assets as a major concern for investors and systemic stability. The report stresses that the increasing integration of digital assets into traditional finance poses risks beyond individual investors as price swings could have widespread implications for the broader economy.