The Bank of Italy has sounded the alarm about potential threats to financial stability posed by cryptocurrency volatility, warning of instability risks arising from their integration into the Italian economy. The report, released in April 2025, highlights how corporations holding Bitcoin could face substantial price fluctuations, increasing financial risk for these firms. Furthermore, the report underscores concerns about stablecoins backed by US bonds potentially disrupting global financial systems. It suggests that reliance on foreign assets creates further vulnerabilities. Notably, the Bank of Italy advocates for a digital euro to manage cryptocurrency risks beyond existing regulations, and this strategy may reshape financial stability efforts in the face of evolving crypto landscapes. The report also emphasizes that regulatory measures are likely in response to these concerns and highlights the importance of increased oversight in the Italian financial sector.