Italy’s Central Bank Sounds Alarm as Trump-Driven Crypto Frenzy Ignites Global Risk Fears
Rome frets while meme coins moon—because nothing says ’stable economy’ like political tweets pumping speculative assets.
Central bankers scramble as retail traders pile into volatile altcoins. Regulatory warnings fall on deaf ears as crypto markets hit record highs amid the chaos.
The ultimate irony? Traditional finance institutions now play whack-a-mole with an asset class they spent years dismissing as a joke.
Italy’s central bank has issued a stark warning as the crypto market rallies sharply, sounding the alarm over potential global financial instability. The surge, largely attributed to renewed political support from U.S. President Donald Trump following his return to office, has revived bullish sentiment across digital assets.
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Trump’s Return Sparks Crypto Rally
According to a recent report, Bitcoin led a market-wide surge after Trump re-entered the political stage with a pro-crypto agenda. His comeback helped propel the total crypto market capitalization to, withof that value.
Contributing to the momentum isannouncement of aandto expand its Truth+ streaming service. This move has further reinforced perceptions of a crypto-friendly administration.
Stablecoin Risks Could Trigger Market Shock
Italy’s central bank is particularly concerned about the growing dominance of dollar-backed stablecoins such asand. These tokens are pegged to U.S. Treasuries, and officials warn that mass redemptions could destabilize global bond markets.
“If large-scale withdrawals occur, it could trigger a shock across both U.S. and international financial systems,” the bank cautioned.
EU Regulators Worry About Euro’s Future
Despite the EU implementing its, Italian authorities fear it may not be sufficient to counter the rapid spread of crypto assets, especially stablecoins tied to the U.S. dollar.has echoed concerns that the euro’s influence could weaken if stablecoin adoption continues at its current pace.
Italy is calling forto prevent systemic risks as crypto usage expands beyond tightly regulated sectors.
U.S. Oversight Also Under Scrutiny
In the United States, regulatory concerns are also mounting. President Trump has reportedlyto key regulatory positions andthat previously focused on investigating crypto-related fraud.
Adding to the controversy,, coinciding with the advancement of the, a legislative proposal that critics argue couldand weaken investor protections.
Why is Italy’s central bank so worried about crypto now?Because the recent crypto surge, driven by speculation and weak oversight, could cause financial instability.
Because they’re tied to U.S. Treasuries, and a mass sell-off could disrupt global financial stability.
