What is the Italian fascination?
In 2018, an Italian football club was placed in history, after being purchased, using cryptocurrencies (Wallen, 2018). It is well documented that Italian sports cars are also being purchased using cryptocurrencies (Montag, 2018). So, in a world where Bitcoin and cryptocurrency are trending as reliable payment options, it only makes sense for banks to start getting involved in this unregulated currency. Or, at least in Italy!?
In March, during the middle of Italian lockdowns, a subsidiary of Banca Sella, an Italian bank, began providing services to customers, using Bitcoin. This is the first step of an Italian bank allowing the use of an unregulated monetary exchange. Furthermore, a popular theme regarding the Bitcoin services, during the COVID-19 pandemic, was that standard coins could have been ‘contaminated’ and touchless digital currency will be on the rise (Bar, 2020).
Is This Political?
Currently, some voices within Italy are pushing for an EU exit, similar to the United Kingdom (Brexit, remember?). Italy is the European Union’s 3rd largest economy and is facing constant pressure from the EU officials about their debt load.
Particularly, the debt ceilings are tough for the country to endure and is seeking ways to reduce spending. But, those politicians in favour of an Italian exit are also pushing digital currency options like Bitcoin. Former Italian Minister of Economy and Finance, Giulio Tremonti shared recently that banks should seek a “structure that incorporates new techniques but maintains old values” (Peng, 2020). While the former minister found ways to answer in broadly generalized terms, the country would need to seek an alternative monetary option if they want to completely break away from the EU. In theory, scepticism can be met. But, not enough to consider plausible.
Is This Covid-19 Related?
There was an early rumour in the global pandemic about surfaces, such as money (notes and coins), could have been contaminated with the virus. That rumour was defunct by several tests, concluding that coronavirus was not a good enough reason to stop using standard cash (Orcutt, 2020). Truthfully, COVID-19 challenged daily life in a way nobody had considered. What an opportunity for cashless based currencies to encourage alternative platforms amid the chaos! In theory, a renewed push could be plausible for touchless, cashless cryptocurrencies.
Concluding, Forward-Looking Statements
It is believed that cryptocurrencies are seeing a renewed push during the global pandemic, mainly because of the ‘touchless alternative’. It should also be noted that many global markets are unsteady. Group these facts with a renewed political discussion of an Italian-exit vote from the European Union, this could be a perfect ‘storm’ for Italians to encourage more banks to release cryptocurrencies. It would be highly unwise to say that shortly Bitcoin will become the official monetary exchange of Italy but if the political pressures align and the Banca Sella release shows positive momentum, it could very well see a brighter future in Italy.
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