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

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

#Banks #Hold #Capital #Bitcoin

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fnetma

Then 5%… Then 10%…

Steady lads…

Rattlesnake_Mullet

Adoption.

Bitcoin does not need banks, but banks need Bitcoin.

coinfeeds-bot

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.*

MemeLordsUnited

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

graphic-crypto

There’s not enough for you only for us!

pannnetone

That’s old news, but still bullish!

MDMALSDTHC

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.

gg3806

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?

vovr

Pömp eet

RemarkableBridge1019

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

Hilarious stablecoins are viewed as less risky.

PaintTraditional2252

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

RedRhino007

So 2% of nothing…. lmao

cantunho

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

modfood

“Allow”?

Rtbrosk

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

nurlathief12

nice

EyesFor1

Thats nice of them.

Jetjones

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.

LuKeNuKuM

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

Aginor23

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

SpitFire92

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.

Godspiral

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.

UnlimitedlyLimited

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

JerryLeeDog

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

lilpeanutbutter99999

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

anotherbobv2

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

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