The Central Bank of Italy has issued a Stark -warning because the Crypto market strongly rallies and alarm sound on potential global financial instability. The increase, largely attributed to renewed political support from US President Donald Trump after his return to office, has revived a bullish sentiment about digital assets.
Trump’s Return wraps crypto -rally
According to a recent reportBitcoin led a market-wide increase after Trump had re-introduced the political stage with a pro-Crypto agenda. His comeback helped to continue the total crypto market capitalization $ 2.75 trillion by Marchof Bitcoin accounting for more than 60% of that value.
Contributing to the momentum is Trump Media & Technology Groups announcement of a utility token And digital wallet To expand his truth+ streaming service. This step has further strengthened the perception of a crypto-friendly administration.
Stablecoin risks can cause the market shock
The Central Bank in Italy is mainly concerned about the growing dominance of dollar-supported stablecoins such as USDT (Tether) And USDC (Circle). These tokens are linked to American treasury and officials warn that mass repayments can destabilize global bond markets.
“If large -scale recordings occur, this can cause a shock in both the US and the international financial systems,” the bank warned.
EU supervisors are concerned about the future of euro
Despite the EU implementing its Mica Regulation (Markets in Crypto-Assets Regulation)Italian authorities fear that it might not be enough to prevent the rapid spread of crypto assets, in particular Stablecoins bound to the US dollar. ECB President Christine Lagarde The concern has shown that the influence of the euro could weaken if the acceptance of the Stablecoin continues at its current pace.
Italy evokes Deeper global cooperation To prevent systemic risks as the use of crypto goes beyond tightly regulated sectors.
Our supervision also under control
In the United States, concern about the regulations are also discussed. President Trump reportedly appointed pro-Crypto officials according to important regulatory positions and dissolved a unit of the Ministry of Justice That was rather aimed at investigating crypto-related fraud.
Add to the controversy, Trump’s sons support a new stablecoincoincide with the progress of the Genius ActA legislative proposal that critics claim could be Turn Crypto Supervision on And weakens the protection of investors.
Because the recent crypto -gain, driven by speculation and weak supervision, can cause financial instability.
Because they are bound by American treasuries and a massive sale can disrupt global financial stability.
Credit : coinpedia.org
