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Over the past few days I have been reading about really know what's going re various Italian banks (up to eight of them) being in big trouble, and that a referendum coming up re Renzi might affect them.
I don't really know what's going on (on vacation), but it sounds perilous, even for German banks. Which would affect everybody as Deutsche Bank is so important because it is so big.
Yet I have seen no reaction in BTC price.
Would anyone from Italy care to comment on:
1) How serious is this Italian bank problem and the consequences of the upcoming vote?
2) I see that Bitcoin price has not gone anywhere since we went on vacation. Is BTC catching on in Italy?
Molto Grazie!
I try to answer briefly
1) Italian bank problem is serius, MPS is now try trying to convert LT2 bonds to cover an IPO ( commanded by BCE) estimated between 5 an 6 Bln (so you can understand that this bank is no so small). If this maneuver will fail, probably bail-in rule will be applied. Bail-in will drag money from deposits over 100k, stocks, uncovered bonds. Funny thing is that the "warranty fund" for deposits under 100K exist only virtually.
Upcoming vote has been relied on banks problems on newspaper only 1 day ago, this is because the vote is (not only) about senate's election and composition ( now is democratically elected and every people over 40 can be elected, if yes wins, regional councils will have the power to choose it from mayors that composed it, which, in my eyes is an auto-election from an elitè ) so bank-vote is not very related ( only relation I can see is that if governament sability will be missed (vote NO option selected), there won't be enough time to handle such emergencies ).
2) Italy has large old aged population (devoted to family's savings, or what remains, which rapresent about 60% of overall public debt ) with ultra high unemployment rate for people aged under 24 (40%).
BTC is catching but at low rate. Some independent private bankers are starting to work with it as a solution for the incoming capital destruction (or requisition if there is some sort of slight difference).