This change has been at the center of the recent report “La diffusione dei Crypto-Asset e della Blockchain nel settore finanziario: analisi della domanda dei Consumatori e dell’offerta delle Banche in Italia”, created 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.

Summary

Growing Interest of Italians in crypto

The study reveals that approximately 14 million Italians, including both young people and individuals with high incomes, show 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 who have had experience with these instruments. An additional 21% intends to purchase them in the future, suggesting a potential market for significant growth.

Current users prefer to use online exchanges for purchasing crypto-assets, while potential investors show a preference for banking apps and financial trading services, highlighting an opportunity for expansion for traditional banks.

The Italian Banks and the Offer of Crypto Services

Currently, the offering of Italian banks in the crypto-asset sector is limited due to regulatory shortcomings and the low demand from traditional clientele. However, there are projects under development related to trading and payments in crypto. Custody services are still lacking, a sector that could represent a new area of growth for financial institutions.

Luciano Serra, Country Manager Italy of Boerse Stuttgart Digital, commented:

“In Italy, crypto-assets present an important growth potential. The MiCA will facilitate the entry of traditional financial institutions into this sector, especially those already in line with the security standards required by recent European regulations. We are at the beginning of a new phase that will favor the expansion of the banks’ offerings and the convergence between traditional and digital finance in all major services in crypto-assets.”

Challenges and Future Opportunities for banks and crypto

Despite regulatory challenges and still limited demand, the mass adoption of crypto-assets seems to be on the horizon. Banks must face a series of obstacles, including the lack of internal knowledge and the need to collaborate with technological 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 vast. We must not make the mistake of considering it a niche market. It is essential to also work on educating users about these instruments, which are very different from traditional financial products and potentially very risky”.

The Italian banks and the relationship with crypto

The 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 trust but also open new revenue streams for financial institutions.

Luciano Serra explained:

“Today the European Union is the largest regulated market in the world for digital assets, with a clear and uniform regulatory framework. Banks could thus reach new customers and increase revenues. The big American players have been active in this field for years, it is time for Italian banks to enter this sector as well.”