Integration of cryptocurrencies into the traditional financial system
- Central Banks to Hold 2% Reserves in Crypto -
Central banks worldwide, including the influential US Central Bank, are set to allocate up to 2% of their reserves to cryptocurrencies beginning January 1, 2025, in a significant step toward embracing the rapidly evolving landscape of digital assets. This ground-breaking decision is the result of the Bank for International Settlements’ Group of Central Bank Governors and Heads of Supervision (GHOS) approval of a global prudential standard (BIS). This move marks a watershed moment in the intersection of traditional finance and the burgeoning world of crypto assets.
The Bank for International Settlements (BIS), often referred to as the central bank for central banks, has played a critical role in shaping this transformative shift. According to the BIS, the global banking system’s direct exposure to cryptocurrencies “remains relatively low.” To address this, the GHOS has approved a standard that allows central banks to hold up to 2% of their reserves in cryptocurrency. This action demonstrates…
