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Homepage > News > Finance > Trump’s ‘crypto’ could risk global finance: Bank of Italy Italy’s top bank has warned that the increasing intertwining of ‘crypto’ and the financial industry poses a risk to the global economy. In its “Financial Stability Report,” Banca d’Italia noted that there has been a sharp uptick in investors’ interest in ‘crypto’ since Trump’s election, which led to price rises for most tokens. “If these instruments were to become more closely entwined with the traditional financial system, there could be greater vulnerabilities for markets and intermediaries,” the bank said. The Italian regulator is the latest to call out the Trump administration and its entanglement with the ‘crypto’ sector. The American president owns a memecoin project, which, at its prime, was worth $14.8 billion. He has also been replacing regulators who were stringent with the ‘crypto’ sector, such as Securities and Exchange Commission’s Gary Gensler, with appointees who are ready to look the other way. Trump is also pushing for a BTC national reserve and other legislation in Congress that threatens the American financial system. “The strong growth of Bitcoin and of other crypto-assets with high price volatility means risks not only for investors but also potentially for financial stability, given the growing interconnections between the digital asset ecosystem, the traditional financial sector and the real economy,” the Italian watchdog states. The top bank called out ‘market participants’ who are rewriting their business models to become crypto-focused. Such firms, led by MicroStrategy (NASDAQ: MSTR), “invest in the belief that BTC can support their share prices, although this exposes them to its marked price volatility.” Italian firms have jumped aboard the bandwagon as well. In January, the country’s largest bank, Intesa Sanpaolo (NASDAQ: IITSF), purchased $1 million worth of BTC, becoming the first lender to make such a purchase…

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Filed under: News - @ May 12, 2025 3:28 pm