Italy proposes tax on savings, analyst argues it improves the merit of Bitcoin

According to Reuters, Italy has proposed the imposition of taxes on cash and other valuable goods held with banks in safe deposit boxes, which may affect hundreds of billions of euros. "Money that is substantially hidden," Deputy Prime Minister Matteo Salvini reportedly said.

Global markets analyst Alex Krüger suggested that if Italy moves forward with its plans to target billions of euros held by investors, it may allow bitcoin to be portrayed as a more attractive store of value. "This is bullish for bitcoin Italy could end up being the best thing to ever happen to bitcoin," he said.

The tax proposal of Italy comes after the eurozone has demonstrated plateauing growth as the European Central Bank explores potential stimuli that could revitalize the eurozone economy. On June 6, The WSJ reported that the ECB has raised the prospect of a benchmark interest rate cut, acknowledging the instability in the economy primarily triggered by growing uncertainty surrounding the U.S.-China trade war that has raised geopolitical risks in the global economy.