News From the Central Bank on the Crypto Market

News From the Central Bank on the Crypto Market

The group of Central Bank Governors and Chief Supervisors (GHOS) of the Bank for International Settlements (BIS) has approved a global standard for the disclosure of banking and crypto assets. The standard, which sets a 2% limit on crypto savings between banks, will be implemented on January 1, 2025, according to a government announcement on December 11. 16.

The report, titled “Prudential Solutions to Crypto-Asset Exposure,” lays out the final standard guidelines for banks regarding exposure to digital assets, including toned traditional assets, stablecoins and unsecured cryptocurrencies, as well as shareholder feedback collected over time. the conversation started with. June. The Basel Committee on Banking Supervision said that the report will soon be included as a new chapter in the Consolidated Basel Framework.

The BIS statement highlights that the global banking system’s exposure to digital assets is still low, but recent events have highlighted “the need to have strong minimum standards for domestic The fund works internationally to ‘mitigate risk’. He also said:

“Crypto-non-supportive stablecoins with poor stability systems will be subject to conservative treatment. This standard will provide a strong and prudent global regulatory framework for the exposure of banks operating internationally to crypto assets that promotes innovation and protects financial stability. »

Pablo Hernández de Cos, Chairman of the Basel Committee and Governor of the Bank of Spain, said in the banner:

“The Commission’s decision on crypto-assets is another example of our commitment, readiness and ability to act globally to reduce emerging risks to financial stability. supervision and conduct of banks in the world all. In particular, it focuses on emerging risks, digitalization, climate-related financial risks and the monitoring and implementation of Basel III.”

The BIS released the results of the CBDC pilot project in September, following a months-long testing process that saw over $22 million worth of transactions. The pilot program involves the central banks of Hong Kong, Thailand, China and the United Arab Emirates, as well as 20 commercial banks from these regions. According to a BIS report published in June, about 90% of central banks are considering the adoption of CBDC.

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