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As the COVID-19 pandemic rages across the entire globe, people are searching for ways to stop or at least halt its spread. As cash is considered to be a potential source of contamination, people are looking to limit its use turning to digital money and contactless payments instead.

The Central Bank of Italy, the government authority of Italy accountable for regulating the Italian securities market CONSOB (Italian Companies and Exchange Commission), IVASS (Italian Institute for the Supervision of Insurance) and the Ministry of Economic Development (MiSE), are trying to get the applications of financial technology (fintech), blockchain and artificial intelligence (AI) in the financial, credit and insurance industry off the ground but within specific rules and regulations.

The update of the agreement for the maintenance of joint accounts between banking institutions regarding the interbank check was finally approved. This allows in perspective the running of the check process in a new way, i.e. using the technology based on distributed registers, the so-called blockchain, starting from March 2020. The financial technology brings new step for banks and other institutions in Italy.

Financial institutions, including banks, are getting closer and closer to financial technologies (fintech) including cryptocurrency, blockchain, mobile payments and smart contracts, as they realize they have to keep pace with progress to make their work more efficient. A group of experts from Bank of Italy recently published a report dubbed "Banks and Fintech: strategies and business models" to explore the bond.

Blockchain technology could play an important role in transforming smart contract processes in Italy. Currently, smart contract process is not dependable and could cause negative consequences if used. The technology has the potential to revolutionize the decentralized register into a robust instrument of control and manipulation.

Several academic papers in Italy discuss the risks associated with cryptocurrencies including Bitcoin, Ethereum, Ripple and others, and warn that there are a number of vulnerabilities created by dependence on blockchain and distributed ledger technology, including cybercrime.

The government of Italy has been focusing on innovative initiatives such as blockchain technology, artificial intelligence (AI), industry 4.0, smart contract, the internet of things (IoT) and others. Italy now wants to become the leading European country in technology after the Brexit. Albeit, anything positive effort must be put in the system if digital technology is to become a mainspring for the real economy and poise public finances.

The Italian prime minister, Matteo Renzi, has taken the all-time risk of pledging to resign after a negative result of a referendum on a constitutional reform which could make it easier for the government to pass laws without unnecessary delays.

The banking crisis in Europe goes even further in Italy. While in countries like Germany and France we see only a decline of major banks’ asset prices, in Italy besides the banking crisis itself another problem occurred - civilian Italians began to distrust bank transfers and payments. One of the possible solutions may be Bitcoin, which can serve as a salutary means, grow in price and even get official recognition in the country.