- Italian lawmaker Marcello Coppo urges banking foundations to invest in Bitcoin, suggesting small allocations from their income
- Italy’s largest bank, Intesa Sanpaolo, recently bought 11 Bitcoins worth about $1 million
- Bitcoin is currently trading at $104,000 as of January 2025
- While the US is making progress towards Bitcoin reserves, Italy is unlikely to establish strategic reserves in the near term
- Bank foundations can help reduce ‘excessive mistrust’ of Bitcoin in Italy through example investments
Intesa Sanpaolo, the country’s largest banking group, has bought 11 Bitcoins worth about 1 million euros ($1 million). This investment, confirmed by the bank’s press service, represents the first direct Bitcoin purchase by an Italian bank.
The news emerged after an internal email from Niccolò Bardoscia, head of the bank’s digital asset trading and investment division, was leaked on the online forum 4chan. The bank later verified the authenticity of this information, confirming their entry into the cryptocurrency market.
This development comes as Bitcoin’s price reaches $109,000, reflecting a strong rally in the crypto market. The timing of Intesa Sanpaolo’s investment is in line with this upward trend, demonstrating growing institutional interest in digital assets.
Italian Member of Parliament Marcello Coppo has taken this momentum to propose a broader adoption strategy. In an interview with trade publication Cryptovaluta, Coppo suggested that Italian banking foundations should consider allocating small portions of their income to Bitcoin investments.
Bank foundations in Italy serve a unique purpose, operating as organizations that use their funds to support social, cultural and philanthropic activities. Coppo argues that these foundations can invest in Bitcoin without risking their existing capital, potentially securing additional funds for community projects.
The legislator emphasizes a cautious approach and recommends that foundations start with minimal levels of risk. He believes that successful test cases can serve as examples for other institutions, especially the banks that these foundations control.
Coppo acknowledges the challenges such proposals face, particularly in Italy’s conservative banking environment. He points out that foundation presidents may be hesitant to commit to Bitcoin investments because of its volatility and the potential impact on their positions if market timing doesn’t align with leadership renewal cycles.
The proposal extends beyond bank foundations to other financial sectors. Coppo suggests that pension funds and insurance companies, which typically focus on long-term investments, could be natural fits for Bitcoin investment strategies.
Private pension plans and insurance products could potentially include Bitcoin as part of their diversification strategies, according to Coppo. However, he notes that this would require increased familiarity with digital assets among financial professionals.
The legislature also addressed employee severance pay (TFR), suggesting they could consider small Bitcoin allocations as part of their investment strategies. This would represent another path for institutional adoption of cryptocurrency in Italy.
While several public pension funds in the US have already allocated funds to Bitcoin, Coppo believes that similar moves in Italy would require more time and training. He emphasizes that Italy’s strong relationship with the US, while important, is unlikely to directly accelerate Bitcoin adoption.
When it comes to national Bitcoin reserves, Coppo has a practical view. Despite Italy’s position as the world’s third largest holder of gold reserves, he does not expect the country to establish strategic Bitcoin reserves in the immediate future.
The legislator emphasizes the importance of building knowledge and understanding before striving for wider adoption. He cautions against rushing into investments, noting that forced or rushed adoption can lead to panic selling during periods of volatility.
The current Bitcoin awareness in Italy is still limited, especially among the financial sector. Coppo suggests that greater understanding of Bitcoin’s fundamentals must precede any major institutional adoption.
As Bitcoin continues to gain mainstream acceptance globally, Italy’s cautious approach reflects the traditional nature of its banking sector. However, the Intesa Sanpaolo investment could mark the beginning of a gradual change in institutional attitudes towards digital assets in the country.
