I want everyone to reread the title again and then if you still have a problem with crypto, then look in the mirror and put a 'dumbass' stamp on yo forhead. 1% of banks reserve assets are going to drive this price way up! Lets read... CRYPTOCURRENCY NEWS Bank for International Settlements to allow banks to keep 1% of reserves in Bitcoin Ana Nicenko3 days ago 3 mins read Despite its skeptical approach to digital currencies, exacerbated by the recent cryptocurrency market crash, it looks like the Bank for International Settlements (BIS) intends to extend its hand to the new asset class by allowing banks to hold up to 1% of reserves in cryptocurrencies such as Bitcoin (BTC). Indeed, BIS’s Basel Committee on Banking Supervision (BCBS) has made the proposal for limiting the banks’ total exposures to “Group 2 cryptossets to 1% of Tier 1 capital” in its consultative document titled “Second consultation on the prudential treatment of cryptoassets,” published on June 30. Group 1 vs. Group 2 assets Specifically, Group 2 refers to the assets that do not meet classification conditions and includes specific tokenized traditional assets and stablecoins, as well as unbacked crypto assets. As opposed to Group 2, Group 1 includes tokenized traditional assets and stablecoins that meet classification conditions. Group 1 vs. Group 2 assets. Source: Bank of International Settlements According to the document: “Banks’ exposures to Group 2 cryptoassets will be subject to an exposure limit. Banks must apply the exposure limit to their aggregate exposures to Group 2 cryptoassets, including both direct holdings (cash and derivatives) and indirect holding (ie those via investment funds, ETF/ETN, special purpose vehicles).” Related U.S. 2nd-largest electric power company reportedly explores Bitcoin miningIMF says cryptocurrencies, CBDCs can be more efficient payment options than current onesMexican senator proposes bill to make Bitcoin legal tender The document also specified that “a bank’s total exposure to Group 2 crypto assets must not be higher than 1% of the bank’s Tier capital at all times,” in line with the Basel Framework which includes all the BCBS’s standards. As it explained: “The large exposure rules of the Basel Framework are not designed to capture large exposures to an asset type, but to individual counterparties or groups of connected counterparties. This would imply, for example, no large exposure limits on cryptoasset where there is no counterparty, such as Bitcoin.” With this in mind, “the Committee proposes, therefore, to introduce a new exposure limit for all Group 2 cryptoassets outside of the large exposure rules.” Meanwhile, this provisional limit set at 1% of Tier 1 capital would be reviewed periodically. Skeptical stance toward crypto Notably, Finbold earlier reported on the BIS using the recent crypto market collapse to affirm its skeptical attitude towards the assets class and warn about the materialization of its predictions about the dangers of decentralized finance (DeFi). On top of that, the global central bank body released in early June a bulletin in which it presented its view that “crypto cannot fulfill the social role of money,” listing a number of problems it perceived in the crypto and blockchain industry, including high fees and network congestion that lead to the landscape fragmentation.
I am still hedged between CeFi and DeFi and will continue to do so. I also expect more traditional banking will continue to merge with DeFi, which is ok. During the current market sell-off, I will continue to grab more Canadian bank stocks while loading up on spot-ETFs. The rest of the time I will be going for the continuing REIT sell-off. If 'bad evil' Oil Sands equities go into a sell-off (I hope), I may just snatch up a bit of that too if the PE goes low enough. Ironically, the last I checked, Buffett was selling off a lot of his prized bank-stocks... Wells Fargo being one of them.
Another attempt to spread misinformation. https://www.reuters.com/business/fi...lising-central-bank-body-bis-says-2022-06-21/ The point here is that banks are allowed to keep 1% of their reserve in CBDCs. Read that again. Obviously creepto fans hear crypto and think of Bitcoin, not quite the news.
All of the crypto hate threads here completely miss the point....and who the real players/bad guys are in dump-and-pump and pump-and-dump. After Bitcoin lost 60% in six months, the globalist Bank for International Settlements (BIS) is allowing member banks to hold 1% of their reserves in Bitcoin. As someone else put it, "[the BIS] it has a long and notorious history as a kind of control hub, handing down orders to national central banks including the Federal Reserve...The BIS, a foreign body that's not elected, essentially dictates central bank decisions well outside the purview of individual governments. This isn't a conspiracy theory; it's been known for many years. BIS (edwardjayepstein.com)
It's MUCH more than that....it's a bunch of guys who want to control the finances of the world...and do in many ways. See my prior comment and link. A mainstream rag like Harper's wouldn't publish an article like that now, but they did in 1983.
Pretty sure it is not going to affect my trading decisions, or where to park my cash. I am damned sure Jerome Powell doesn't give a shit about them either. They do not affect the government banks in any way. If they did, that would not be posting a fucking PnL statement, like a corporation! Rofflecopter.