This change was central to the recent report “La diffusion of Crypto-Asset and Blockchain and Financial Settlers: Analyzes of Domanda of Consumers and Offers of Banks in Italy”, prepared by Boerse Stuttgart Digital in collaboration with the Osservatorio Blockchain & Web3 of the Politecnico di Milano.
The research was presented yesterday, July 23, 2024, at the Fintech District in Milan.
Growing interest among Italians in crypto
The survey shows that around 14 million Italians, including both young people and high-income individuals, are showing interest in crypto assets. Currently, 11% of the Italian population owns cryptocurrencies, while 10% have owned them in the past.
This leads to a total of 21% of Italians having experience with these instruments. Another 21% plan to purchase them in the future, indicating a potential market for significant growth.
Current users prefer to use online exchanges to purchase crypto assets, while potential investors show a preference for banking apps and financial trading services, highlighting an expansion opportunity for traditional banks.
The Italian banks and the offering of crypto services
Currently, Italian banks’ offering in the crypto-asset sector is limited due to regulatory shortcomings and low demand from traditional customers. However, there are projects in development related to crypto trading and payments. Custodial services are still lacking, a sector that could represent a new growth area for financial institutions.
Luciano Serra, Country Manager Italy of Boerse Stuttgart Digital, said:
“In Italy, crypto assets offer significant growth potential. The MiCA will facilitate the entry of traditional financial institutions into this sector, especially those that already meet the security standards required by recent European regulations. We are at the beginning of a new phase that will promote the expansion of the banks’ offering and the convergence between traditional and digital finance in all major crypto asset services.”
Challenges and future opportunities for banks and crypto
Despite regulatory challenges and still limited demand, mass adoption of crypto assets appears to be on the horizon. Banks face a range of obstacles, including the lack of internal knowledge and the need to collaborate with technology partners to acquire the necessary skills.
Valeria Portale, Director of the Osservatorio Blockchain & Web3 of the Politecnico di Milano, emphasized:
“In Italy the pool of potential users is enormous. We should not make the mistake of considering it a niche market. It is essential to also work to educate users about these instruments, which are very different from traditional financial products and potentially very risky.”
The Italian banks and the relationship with crypto
Italian banks have the opportunity to become trusted intermediaries in the crypto sector, offering secure custody services and advice on the risks and opportunities of these new financial instruments. This could not only increase user confidence but also open new revenue streams for financial institutions.
Luciano Serra explained:
“Today, the European Union is the world’s largest regulated market for digital assets, with a clear and uniform regulatory framework. This would allow banks to reach new customers and increase revenues. The major American players have been active in this area for years, it is time for Italian banks to also enter this sector.”
