Banks Are Fleeing Crypto. Bitcoin Investors Should Be Worried

Re:Banks Are Fleeing Crypto. Bitcoin Investors Should Be Wor... by rufusroflpunch on Monday January 09, 2023 @08:22PM (#34319049)

I don’t think this one example they provided is indicative. Didn’t the BIS just give their okay for banks to hold 2% of reserves in Bitcoin? Also, didn’t FASB just change their accounting rules to make businesses holding crypto easier on the balance sheet?

Presumably demand is going in the opposite direction that this blurb would indicate.

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Re:Banks Are Fleeing Crypto. Bitcoin Investors Should Be Wor... by markhuggins on Monday January 09, 2023 @09:06PM (#34319418)

A quick read seems to me to state that no, the Basel crowd did not give banks an OK to hold 2% in Bitcoin. On the contrary they've added a new rule that states it needs to be <1% (and even then should be risk weighted at 1250%).

BIS (https://www.bis.org/bcbs/publ/d545.pdf) This states that banks should in the normal course of business hold less than 1% and must report anything higher, 2% is when an additional 'penalty' applies.

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Re:Banks Are Fleeing Crypto. Bitcoin Investors Should Be Wor... by joedavison on Monday January 09, 2023 @09:07PM (#34319428)

The story about BIS authorizing banks to hold 2% of reserves in Bitcoin was dramatically misreported. This was actually placing a limit on their holdings, to 2%, which is down from no limit previously.

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