The Bank of Italy identified Bitcoin and other digital assets as emerging risk factors in a recent report, citing concerns for both investors and the financial system.

In its April 2025 Financial Stability Report, the Bank of Italy flags crypto volatility and rising integration with the broader economy, singling out stablecoins and non-financial firms’ crypto exposure as key concerns.

“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 report notes.

Excerpt from the Bank of Italy’s Financial Stability Report. Source: Bank of Italy

The Bank of Italy’s report also addressed the trend of non-financial corporations holding Bitcoin, stating that it exposes them to “marked price volatility” driven by “the belief that Bitcoin can support their share prices.”

Strategy (formerly MicroStrategy) helped popularize the corporate purchase of Bitcoin, beginning its acquisitions in August 2020. Since then, several companies have followed its lead, including Metaplanet, Semler Scientific, and GameStop.

The Bank of Italy also addressed stablecoins in its report, noting potential risks if dollar-pegged tokens were to become systemic. It suggested that increased reliance on US government bonds to back these assets could introduce broader financial vulnerabilities. According to the report, disruptions in either the stablecoins or the underlying bonds could have “repercussions for other parts of the global financial system.”

The report comes just a few days after Giancarlo Giorgetti, the country’s minister of economy and finance, warned that the appeal of US dollar stablecoins should not be underestimated. According to Giorgetti, US stablecoin policies are more dangerous than US President Donald Trump’s tariffs.

Related: Italy scales back plans to hike crypto tax rate: Report

Giorgetti, in his speech, highlighted the need to enhance the euro’s position on the global stage, noting that the development of the Digital Euro will play a crucial role in reducing reliance on foreign digital solutions.

Related: Italy’s largest bank enters crypto market with $1M Bitcoin investment