The Bank of Italy has published a research note, "What if Ether Goes to Zero? How Market Risk Becomes Infrastructure Risk in Crypto", arguing that volatility in crypto-asset prices can translate into availability and security risks for permissionless blockchains used as settlement infrastructure. The paper highlights that permissionless blockchains are operated by decentralized sets of independent validators that are typically compensated in unbacked crypto-assets (native tokens). It notes that a substantial and persistent loss in a native token’s market value could lead validators to cease operations, slowing or stopping transaction settlement and increasing the infrastructure’s exposure to cyberattacks, despite potential cost and speed advantages relative to legacy solutions.
Bank of Italy 2026-01-12
Bank of Italy publishes research on how an Ether price collapse could disrupt permissionless blockchain settlement
The Bank of Italy's research note, "What if Ether Goes to Zero? How Market Risk Becomes Infrastructure Risk in Crypto," discusses how crypto-asset price volatility can lead to availability and security risks for permissionless blockchains, as a significant loss in a native token's value may cause validators to halt operations, impacting transaction settlement and increasing cyberattack exposure.