Is this a Trojan Horse or a trap? Who knows. More likely an indirect attempt to still try and co-opt Bitcoin while opening the door wider to CBDCs. Nonetheless, the holier than thou BIS is proposing that member banks could be able to hold up to 1% of core capital in Bitcoin. Wait, what? The "experts" kept telling us BTC would go to zero and it was a fraud. Hmmm.
The chart above is how the BIS framework is evaluating crypto and bank exposures apparently. No per se limits on "stablecoins" (i.e. CBDCs) but "Group 2 exposure limit" for Bitcoin set at 1%. This really reminds us of our post talking about how the Fed could be preparing Bitcoin to catch the fallout from damage in the financial system. Interesting. No, it does not specify or mandate Bitcoin but rather split between stablecoins and crypto in general. Sorry XRP Cult - no, the BIS is not telling all banks to load up on XRP. Banks will only move on something that is legit and liquid.
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