According to the findings of a research that was just released by the Basel Committee on Banking Supervision (BCBS), the leading banks across the globe are vulnerable to the loss of around $9 billion worth of cryptocurrency. The Bank for International Settlements is an international organisation with members that are connected to the central banks and financial institutions of the globe. These members come from a wide variety of legal systems.
The exposure, which mainly involves client services involving bitcoin (BTC) and ether (ETH), represents 0.14% of the total exposure to risk from the 19 banks who sent in data, which is just 0.01% across all banks, and the survey, which is the first of its kind, is set to have a clear impact on policy.
“The template [sent to banks] was specifically designed to support the Committee’s two consultative documents on the prudential treatment of banks’ crypto asset exposures, which were published on June 10 2021 and June 30 2022,” the study, penned by Renzo Corrias of the Committee’s Secretariat, said.
According to the BCBS, about 10 financial institutions originating from the Americas were among the 19 banks and financial institutions from across the globe that contributed data to the study. There were seven banks that originated in Europe and two banks that originated elsewhere on the globe. According to Corrias, the banks constitute a rather small group of financial institutions when compared to the total of 182 banks that the BCBS took into consideration for its Basel III monitoring exercise.
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