Bank of Italy Economist Warns: An Ether (ETH) Collapse Could Threaten Ethereum's Finance Hub Status

A senior economist from the Bank of Italy has issued a stark warning about the potential systemic risks within the cryptocurrency ecosystem. In a recent paper, the economist highlighted that a hypothetical collapse of Ether (ETH) to a zero valuation would serve as a critical stress test for the entire Ethereum network. The core concern is that such an extreme event would challenge Ethereum's foundational role as a decentralized hub for finance (DeFi) and smart contracts. The analysis underscores the deep interconnection between ETH's market value and the operational security and utility of the Ethereum blockchain. This warning brings central bank scrutiny to the resilience of decentralized finance infrastructures and their dependence on native crypto assets like ETH.