Banks to set aside sufficient funds to fully cover the loss of any bitcoin holdings, with a proposal on Thursday, the global bank regulatory authorities as a “conservative,” the trait may prevent the widespread use of cryptocurrency by the major lenders.
The basel committee on banking supervision, consisting of the supervisor, the world’s leading financial centres, has been proposed as a binary approach to capital requirements for cryptoassets, are owned by the banks, with his first of the special rule for the emergence of this sector.
El Salvador became the first country in the world to accept bitcoin as a payment method, in spite of the fact that central banks around the world have repeatedly warned that investors in the cryptocurrency should be prepared to lose all of their money.
The price of bitcoin in India in the 5 p’s.(m). eastern time, on the 10th of June was Rs 27.7 lakh.
It is the largest economies, such as China and the united states, last week signaled a tougher approach, to draw up plans for the development of their own digital currencies by the central bank.
The swiss-based Basel committee, the Committee of public consultation, including those in the banking business of the cryptoassets are limited to their continued growth, may increase the risks to global financial stability, capital is introduced.
Bitcoin and other cryptocurrencies, is currently worth an estimated $ 1.6 trillion (about Rs 1,16,90,220 crore) across the globe, is still small relative to the bank’s shares, loans, derivatives and other assets.
The Basel ii rules, which require banks to köçürülməyə after the start of the neighboring nations, “the mass of risk for different types of assets in their ledgers, cəmləşdirərək them, in order to define common requirements for capital.
For cryptoassets, Basel, two of the major groups.
The first one includes some of the tokenized traditional assets and stablecoins, as it falls within the framework of the existing rules and will be treated as debt securities, loans, deposits, shares, or commodities.
This means that the weight can range from 0% for the tokenized government bonds to a 1 250% of the full value of the asset that is the subject of the shareholders ‘ equity.
The value of stablecoins, and the second Group of 1, the crypto assets that are tied to traditional assets, such as is the case in all of the cases in which the features of the Facebook Diem stablecoin.
However, in view of cryptoassets, based on the new and fast-growing technologies like the blockchain, which creates a high degree of operational risk, which calls for “extra” income for all of the kind, and said, Basel, switzerland.
“Unique risks”
The second group includes cryptocurrencies like bitcoin, to be the subject of a new, conservative and supervision, with a risk weight of 1 250% to its “unique risk”.
Bitcoin and other cryptocurrencies, is not related to an underlying asset.
According to the so-called Basel Rules, the risk-weight of 1250%, which means that the banks are required to have an income that is at least equal to the value of their exposure to Bitcoin or other Group 2 crypto assets.
The capital will be sufficient to absorb the full removal of the crypto asset risk to depositors and other bank creditors will lose,” he added.
