- Italy sees Crypto financial finances as a risk to stability.
- Trump's crypto support can increase exposure to the global market.
- The dollar -managed dollar brings threats to EU sovereignty.
The Bank of Italy sounds an alarm to the growing integration of cryptocurrencies in the major financial markets, warning that the trend is at risk for the stability of the global market, especially under the ru-crypto management policies of Trump management.
Central Bank, in April's financial stability report, identified the increase in prices of digital assets following Trump's success in polls and the resulting relaxation of regulation in the United States. The bank has warned that increasing coherence between crypto and finances may make markets exposed to shocks and contagion.
“The closer these properties will go to the mainstream finance, the greater the risk of financial stability,” the report stated.
US influence and corporate exposure
The report criticizes the growing influence of US-based companies in the crypto sector, with approximately 75% of major digital asset companies operating without adequate management of management. It also raised alarms in increasing bitcoin use by corporate treasury and ETFs to support stock values.
Moreover, it warned potential conflicts of interest and power concentration, especially on digital platforms that were not subject to strict financial regulations.
Stablecoins and Europe's sovereignty
One of the major issues raised is the proliferation of dollars that are back in stablecoins such as Tether (USDT) and USD Coin (USDC). The bank warned that a general running on stablecoins could lead to mass selling US treasury bonds, affecting Global Liquidity.
In addition, it warns that Stablecoins has been able to euro issued by American companies will undermine the EU authority over it Financial systems.
Despite these warnings, Italy's largest bank, Intesa Sanpaolo, is expanding to crypto, buying € 1 million in Bitcoin earlier this year and supporting the country's first blockchain bond.
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