$3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by Quinner on Monday May 16, 2022 @01:53PM (#31401047)

In the US, the required reserve ratio has been 0% since March 2020. I personally wouldn't view the traditional financial system as about as trustworthy as things get.

[ Parent | on HN ]

Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by jcranmer on Monday May 16, 2022 @03:31PM (#31402203)

The ratio you're talking about is the amount that needs to be in the bank's account with the Federal Reserve as a fraction of its total liabilities. Only the money in that bank account qualifies for that reserve ratio; holding on to a literal stack of dollar bills in a bank vault somewhere does not.

That ratio is 0% because it's been judged that there are better ways to require solvency than doing that (chiefly, requiring capital buffers).

[ Parent | on HN ]

Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by gruez on Monday May 16, 2022 @02:29PM (#31401486)

AFAIK reserve requirements (ie. cash on hand) was dropped to 0%, but capital requirements (ie. assets on hand) are still there.

[ Parent | on HN ]

Re:$3B in Bitcoin was sold in a last-ditch attempt to save U... by namdnay on Monday May 16, 2022 @03:18PM (#31402055)

When was the last time anyone lost the money in their checking account due to a bank failing in the US?

[ Parent | on HN ]