EU Will Allow Banks To Hold 2% Of Capital In Bitcoin

Then 5%… Then 10%…

Steady lads…

Adoption.

Bitcoin does not need banks, but banks need Bitcoin.

tldr; The European Parliament on Tuesday approved a bill to implement the final stage of the post-financial crisis global bank capital rules (Basel-III) starting in January 2025. It stipulates that volatile cryptocurrencies like Bitcoin will be considered the riskiest investment. This means that European banks must hold more than one euro of free capital for every euro of cryptocurrencies.

*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Well, we know banks dont hold money, so, 2% of zero is still zero.

There’s not enough for you only for us!

That’s old news, but still bullish!

Banks don’t have capital. Your account shows how much they owe you not how much you have. That money is theirs. They ask for loans from people disguised as deposits. By capital they mean debt. Banks can now hold 2% of their debt in BTC. Still nice to see adoption however word choice matters.

Lol, it means that the crypto held by the banks need to be discounted by 50. 1 $ cash & equivalent= 1$ in asset… 1$ in gold= 1$ in asset. 1$ in crypto= 0.02$ in asset.

You still think it is a good news?

Pömp eet

But they said it was on ‘the road to irrelevance’?

Hilarious stablecoins are viewed as less risky.

Bitcoin Breaches the doors of banks. Bitcoin doesn’t need the bank, its taking over

So 2% of nothing…. lmao

is this fake news? Why can’t i find this article in other news outlets?

“Allow”?

well they run off frictional reserves banking…….not sure what that means

nice

Thats nice of them.

It’s 2% of the whole class if I’m not mistaken. Including Stable coins, which must be higher on their list. I also read somewhere that they can’t buy it with client funds. So I highly doubt they’ll own a lot of BTC. One can dream, tho – I sure hope they do.

So, I am reading this right… they must back their rock-solid bitcoin asset with shitty fiat?! It’s a topsy turvy world.

These dudes need to figure out what the fuck they think about Bitcoin. Reading EU news is giving me whiplash

Ah, and then if bitcoin should fail (I hope it doesn’t, I got 0.5 btc) they can simply get a subsidy. Cool. Cool, cool, cool.

Very big. Entire EU banking group will hold 2% bitcoin, because one bank that wants to hold more than 2% can make a “cash settled swap” with another bank, where it earns cash when btc goes up, and other bank has risk free position of its btc holdings going up in value the same as the cash they lose. That counterparty can be paid a premium that guarantees they profit under all scenarios.

I work in banking, specifically in capital treatment for commercial loans. This is a big deal!

The big deal is that banks are required to hold reserves based on risk. BTC is far and away less risk than any other shit coin and this will show the banks how secure the network is etc. Cream rises

BTC or any crypto asset. What did the BTC maxi say? “Oh shit, it’s down 87% again”

…as long as tjhey also hold the same value of EUR to “back it up”. How is that good?