- This topic has 1 reply, 2 voices, and was last updated 3 months ago by SaltyShellback.
- Saturday, July 2nd, 2022 at 00:21 #324497Ima_WreckyouParticipant
The Bank for international Settlements also known as the central bank of central banks has just released a document where they allow their members (central banks) to put up to 1% of their reserves into BTC.
>Over the past few years, the cryptoasset market has rapidly grown. Since the publication of the
first consultative document the cryptoasset market has expanded further, though during the past six months the aggregate value of the market has contracted significantly. While the cryptoasset market remains small relative to the size of the global financial system, and banks’ exposures to cryptoassets are currently limited, its absolute size is meaningful and there continue to be rapid developments. The Committee believes that the growth of cryptoassets and related services has the potential to raise financial stability concerns and increase risks faced by banks.
I’m no expert, but this sounds to me like they are afraid about speculative attacks and allow the possibility for central banks to hold BTC as a hedge, the same way they hold gold reserves. Could be wrong on that, but why would they perceive it as a threat and at the same time allow it’s members to hold it on the balance sheet otherwise?
I don’t think that central banks will now rush to buy BTC, but it’s an interesting development and shows that BTC is clearly no longer just seen as a fad that will pass but taken quite seriously by this institutions.Saturday, July 2nd, 2022 at 01:01 #324498SaltyShellback
I’m no expert too, but I think the 1% exposure gives them unlimited upside with only a 1% downside risk.
- You must be logged in to reply to this topic.
Related Forum Topics:
- → The Bank for international Settlements also known as the central bank of central banks, now allows their members to put up to 1% of their reserves into BTC
- → Bank for International Settlements to allow banks to keep 1% of reserves in BTC [Crypto News]
- → If you thought CBDC’s are here to help people, here is some clarity from Bank of International Settlement’s head: “With cash, we dont know who is using a $100 bill and who is using a 1000 pesos bill. A key difference in CBDC is that the central bank will have absolute control over its use.”
- → Australia’s central bank is bankrupt except that it can effectively print more money. other central banks are in similar situations. this will not end well.
- → Wouldn’t have said it better. BTC allows you to break free from fiat abusers, including nation states and central banks. [Image]
- → “If I put our reserves in BTC, please put me in Kamiti (a maximum security prison) and throw away the key because I’ll be out of my mind.” says Patrick Njoroge – Governer of the Central Bank of Kenya
- → Powell: A US central bank digital currency is being examined to “help the US dollar’s international standing.”
- → If Russia had part of its $284B central bank reserves in bitcoin, they would have never been frozen
- → BTC miners offload reserves as crypto prices fall. Rising energy costs and falling crypto prices mean miners are liquidating their reserves [Crypto News]
- → Explained. How do banks make money off your money? What happens when your deposit hits banks’ liquidity pools? How do central exchanges follow traditional banking patterns? How does DeFi flip this atrocious system on its head?
- → Mitsubishi Bank will carry out settlements in Japanese yen denominated stabelcoin
- → Qatar Central Bank Studying Digital Banks and CBDCs
- → Argentinian banks have been banned from processing all crypto purchase requests from clients following a directive from the central bank [Crypto News]
- → Kraken now allows their account holders to verify their reserves!
- → The 2iQ Research analysis found 21 members of Congress or their immediate family traded cryptocurrencies, crypto-investment products and stocks in crypto-related businesses. Out of the group, seven members serve on committees in the Senate or House that hold key regulators accountable.