The European Commission approved the Bank for International Settlements (BIS) program, according to which banks can store up to 2% of their assets in bitcoins. This is reported Bitcoin Magazine.
December became knownthat the Basel Committee of the BIS, which is responsible for banking supervision, has completed a program that sets a bar of 2% on banks’ capital held in bitcoins. The program was also approved by the Basel Committee’s inspection body, the Group of Central Bank Governors and Heads of Supervisors (GHOS), which is the global setter of banking regulatory standards.
It is known that the BIS was considering a program capping a 1% ceiling on holding bank capital in bitcoin, while the banks wanted a 5% permit. So the final 2% is a compromise. According to 2020 data, the capital of all banks in the world combined was about $180 trillion, which means a potential investment in bitcoin in the amount of $3.6 trillion.
Currently, the number of all available bitcoins is 19.27 millionwhich at the current rate corresponds to about $440 billion, which is 8 times less than the amount that banks will be able to hold in bitcoins from now on.
The Bank for International Settlements is an international financial institution whose function is to promote cooperation between central banks. It also facilitates international financial settlements and is a center for economic and monetary research.
BIS was established by the central banks of the leading trading countries, each of which appoints its representative to the board of directors. BIS is headquartered in Basel, Switzerland.
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