The Basel Committee on Banking Supervision has revealed new guidelines for financial institutions that want to hodl bitcoin (EXANTE: Bitcoin) or other cryptocurrencies, Reuters reports. Global financial regulators say banks should set aside enough capital to cover losses on any cryptocurrency holdings in full.
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It is expected that the new rules might prevent fast and wide adoption of cryptocurrencies that could have been triggered by lenders. The Swiss-based committee admits that bank exposures to cryptocurrencies are limited for now. However, their raising interest in these assets could "increase risks to global financial stability" if capital requirements are not introduced.
The committee also suggested splitting cryptocurrencies into two groups: eligible for treatment under already existing frameworks and those that are not. The committee's proposal comes after the Legislative Assembly of El Salvador passed a law according to which bitcoin became legal tender in the country alongside the US dollar.
Later, El Salvador's president, Nayib Bukele, said that he instructed the head of the state-owned geothermal electric company to put up a plan "to offer facilities for Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos."
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