The Bank of Italy has issued a warning regarding Bitcoin and other cryptocurrencies, highlighting their potential for risk to financial stability in its April 2025 report. The report identifies the volatile nature of digital assets as a major concern, particularly stablecoins and non-financial firm exposure to crypto assets. It emphasizes the interconnectedness between the digital asset ecosystem, traditional finance, and real economy growth, pointing out how rapid Bitcoin and other cryptoasset expansion poses risks for both investors and the broader financial system. The report also investigates the trend of non-financial companies holding Bitcoin, analyzing their increased exposure to price volatility due to the belief that it can boost share prices. Companies like Strategy (formerly MicroStrategy) led this trend, followed by others like Metaplanet, Semler Scientific, and GameStop, who adopted similar strategies. The report also analyzes potential risks associated with stablecoins, particularly if dollar-pegged tokens become systemically important. It suggests that reliance on US government bonds to support these assets could introduce broader financial vulnerabilities. Disruptions in either the stablecoin or underlying bond markets would potentially have cascading effects across global financial systems.