Banks’ Bitcoin Holdings Should Be Capped, Basel Committee Proposes
— Cautious, Risk, Holdings, Exposure, Incentive, Capped, Insure, Minimum capital requirement, Committee, Crypto — 1 min read
The original plans meant a bank with an exposure to crypto of $100 has a minimum capital requirement. Bank is able to insure against its risk after receiving a barrage of complaints that its previous approach was too cautious. But the Committee seems to have softened its position on crypto holdings where the bank can insulate against its own risk. The original plan had meant bank with exposure to $100 would have to pay $100 to get involved in crypto markets. The bank is now able to insulate itself from the risk of losing its exposure by insuring against its exposure to crypts. The Committee has softened its stance after receiving complaints from the public that it was too cautious to get involved with the crypto market in the past. The Source