Central banks around the globe now have official permission from the Bank for International Settlements to hold up to 2% of their capital in cryptocurrency.
There is an important condition to keep in mind, however. The minimum collateral reserve required for crypto holdings is set at 1,250%. To see how this plays out in practice, a bank looking to invest $10,000 in BTC would be obligated to supply an extra $125,000 in reserve funds.
Even with this substantial requirement, the update is fantastic news for the mass adoption of cryptocurrencies. Giving banks the ability to officially own digital assets marks a highly positive and major milestone for the industry.
There is an important condition to keep in mind, however. The minimum collateral reserve required for crypto holdings is set at 1,250%. To see how this plays out in practice, a bank looking to invest $10,000 in BTC would be obligated to supply an extra $125,000 in reserve funds.
Even with this substantial requirement, the update is fantastic news for the mass adoption of cryptocurrencies. Giving banks the ability to officially own digital assets marks a highly positive and major milestone for the industry.