The Bank for International Settlements will allow banks to store 1% of reserves in bitcoins
Despite its skeptical approach to digital currencies, exacerbated by the recent collapse of the crypto market, the Bank for International Settlements (BIS) intends to expand opportunities for a new asset class by allowing banks to store up to 1% of reserves in cryptocurrencies, such as bitcoins.
The Basel Committee on Banking Supervision (BCBS), in its advisory document published on June 30, set a limit of 1% of tier one capital for the riskiest class of crypto assets. The restriction will apply to unsecured cryptocurrencies like bitcoin and to assets like algorithmic stablecoins that are supported by other cryptocurrencies.
The Committee expects comments and suggestions from the banking community by the end of September and promises that until that date it will closely monitor the rapidly changing and unstable crypto market. The standards, which the Committee intends to complete by the end of the year, may be tightened if shortcomings in the consultation proposals are identified or new elements of risks appear.
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