Banks need to secure capital for their exposure to cryptocurrencies based on a proposal submitted by the Basel Committee on Banking Supervision on Thursday. “Banks’ exposure to crypto assets is currently limited, but the continued growth and innovation of crypto assets and related services, coupled with the growing interest of some banks, in the absence of certain health, the world. BIS may increase the risk of financial stability and the risk to the banking system. BIS makes “Group 1” crypto assets like stablecoin more than “Group 2” crypto assets like Bitcoin. He said that a small risk weight will be allocated along with assets such as stocks.
It is assigned a risk weight of 1,250%. The $ 100 exposure to these Group 2 crypto assets requires a minimum capital of $ 100 under the BIS proposal.
Banks need to secure capital equal to Bitcoin assets under BIS proposal
Source link Banks need to secure capital equal to Bitcoin assets under BIS proposal