The Central Bank of Italy called the policy of US President Donald Trump to develop the crypto industry aggressive. The regulator fears that the growth of crypto is large risks for banks and the global financial system.

The report on financial stability, the Italian bank noted a sharp increase in cryptocurrencies after the new US administration announced the support of digital assets. After Trump’s inauguration, a strong influx of capital was observed in speculative assets, especially in bitcoin. If these extremely volatile tools will become closely related to traditional finances, then financial intermediaries, like the economy as a whole, will become very vulnerable, the Central Bank fears.

The Bank of Italy noted that by the end of March, the total capitalization of the cryptornic reached $ 2.75 trillion, and Bitcoin accounts for more than 60% of this amount. Not only retail investors are now investing in cryptocurrency. A significant share of bitcoins belongs to companies that launched cryptocurrency exchange funds (ETFs), trading platforms and non -financial corporations. These organizations can use bitcoin to increase stock prices or to change their business models, despite the high volatility of cryptocurrencies.

The Italian Central Bank also expressed concerns about the dominance of dollar stabblecoins released by Tether (USDT) and Circle (USDC). Their issues are strongly dependent on the US government bonds used as reserves. If these stabilcoins are firmly introduced into the financial system, this will provoke market instability during repayment crises. A possible large -scale collapse of stabilcoins will cause side effects that will affect both the US bond markets and the entire world economy, and the Italian Bank warned.

Recently, the Executive Director of the European Securities and Markets (ESMA) department, Natasha Cazenave, also expressed fears that cryptocurrencies are increasingly intertwining with real economics, although so far they occupy a small share of world finance.