Intesa Sanpaolo, Italy’s Biggest Bank, Acquires €1 Million Worth of Bitcoin in Its Inaugural Cryptocurrency Transaction

Intesa Sanpaolo, the foremost bank in Italy by assets, has initiated its inaugural venture into the realm of cryptocurrencies with an investment of €1 million (approximately $1.03 million) in Bitcoin.

According to an internal communication dated January 13, 2025, the financial institution has acquired a total of 11 Bitcoin. This marks it as the premier Italian banking institution to directly engage in the purchase of digital currency.

At a recent gathering in Milan, CEO Carlo Messina referred to the venture as “a trial” aimed at gaining insight into the domain of cryptocurrencies. “It signifies a certain level of consideration for digital mediums, albeit with an investment that remains notably modest,” Messina commented. He pointed out that this foray into cryptocurrency is minuscule in comparison to the bank’s massive securities portfolio, which is valued at around $100 billion.

In 2023, the bank established a dedicated trading platform for crypto assets, dealing with digital currency transactions utilizing its own capital. While it engaged in trading crypto-based derivatives and related exchange-traded funds (ETFs) previously, this step into Bitcoin signifies its initial direct investment in spot cryptocurrency trading, following the completion of essential internal authorizations and system enhancements in the preceding November.

An initial leak on the online forum 4Chan exposed the development, where a message from Niccolo Bardoscia, the bank’s principal figure in digital asset trading and investments, was first seen. The internal email was subsequently authenticated by domestic news sources such as La Stampa and Criptovaluta.it, and was further disclosed by Reuters.

Messina indicated that the impetus behind this transaction was to be well-positioned for any upcoming client inclinations towards such investments, while also making it clear that he does not have personal Bitcoin holdings.

This strategic move coincides with the Italian government’s reconsideration of the projected increase in taxes on profits from cryptocurrency, following pushback from the crypto community and internal dissension within the currently governing coalition.

The budget initially suggested for the year 2025 called for an increment in the tax rate on crypto capital gains from 26% to 42%. Nonetheless, political figures Giulio Centemero and Treasury Junior Minister Federico Freni from the League party in power attested that the proposed enhanced taxation would undergo a “substantial decrease” amid parliamentary discussion.

The League has argued that a significant tax hike could inadvertently push crypto dealings into unregulated economies. Centemero and Freni jointly declared, “We need to move past the prejudiced perspectives on cryptocurrencies.”

Insiders from the political sphere hinted that the government is contemplating retaining the pre-existing tax rate of 26%. The heightened tax measure was initially devised to tap into the surging interest in cryptocurrency investments, especially in light of Bitcoin’s recent peak above the $100,000 mark.

In the prior year, Italy had set a 26% capital gains tax on crypto transactions that exceed €2,000 as part of its fiscal legislation. The original forecast for the 42% tax was projected to garner approximately $18 million in revenue yearly; however, with the suggested revised rate of 28%, the earnings are expected to be lower.