Intesa Sanpaolo has made a definitive move with a new Bitcoin purchase that sets it on a path of history as the first in Italy.
Intesa Sanpaolo, the largest banking group in Italy, has bought 11 Bitcoin units for about $1.02 million. According to a report, this recent transaction is the first time an Italian bank has directly purchased cryptocurrency. Notably, this move may play a role in reshaping how traditional banks in the region and abroad view and work with digital assets.
Although the bank’s Bitcoin BTC $96 142 24h volatility: 6.1% Market cap: $1.90 T Vol. 24h: $60.69 B purchase is part of its ongoing financial operations, the exact reason remains unclear. It is unknown if Intesa Sanpaolo plans to move into the crypto market or if the purchase relates to some undisclosed operations. Some crypto enthusiasts believe the bank is testing the claims Bitcoin can serve as a hedge against inflation.
Niccolo Bardoscia, head of digital assets trading and investments at Intesa Sanpaolo, expressed enthusiasm about the purchase. However, he did not share any hint on whether the bank plans to offer crypto offerings on a large scale.
Meanwhile, Intesa Sanpaolo’s decision is important for Italy, where banks have been careful about getting into cryptocurrency. It could also show a larger trend in Europe. As more people worldwide accept cryptocurrency, more banks are looking to invest in digital assets, similar to actions taken by banks in other areas.
Notably, Intesa Sanpaolo is not new to adopting digital innovations. Recall that Italy’s financial sector experienced a major transformation after it issued a 25 million euro digital bond. As reported, the feat was achieved following a collaboration between Cassa Depositi e Prestiti SpA (CDP) and Intesa Sanpaolo. It also marked the first of such transactions under Italy’s newly implemented “FinTech” decree law.
It is worth noting that this development is not just an advancement for Italian banking. On a broader note, the move aligns with the European Central Bank’s (ECB) efforts.
Meanwhile, the Italian government has planned a significant increase in the capital gains tax on Bitcoin. The government aims to generate funds to support public services. The tax hike is part of a broader plan in the country’s 2025 budget proposal and is awaiting parliamentary approval.
The country’s Deputy Economy Minister Maurizio Leo stated that under the new budget, profits from BTC and other crypto investments would face a capital gains tax of 42%. Significantly, the 42% is higher than the current rate of 26% it levies. Also, the move is part of the government’s effort to capture more revenue from the rapidly growing economy.
If approved, the tax hike could impact Italy’s crypto community, particularly for those profiting from trading digital assets.
While the tax primarily targets large-scale investors, the overall impact on Italy’s growing crypto market remains to be seen. The proposal could also make the European nation one of the countries with the highest capital gains tax rates on digital assets. According to market experts, this may discourage potential investors eyeing the country.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.