The International Financial Association (IIF), a federation of international financial institutions, said, "Bank cryptocurrency holdings announced by BCBS in June, Regulations such as "Limit to 1% of capital" are too prohibitive," he pointed out.

"The International Financial Association argues that cryptocurrency-related investment activities could result in concentration in the non-banking sector.

" The association explained that the restriction on banks' holdings of cryptocurrency should be extended to at least 5% of their Tier 1 capital."

The figure shows that banks have $3.6 trillion in cryptocurrency holdings when they invest 2% of their bank capital. The International Finance Association (IIF), a federation of private international financial institutions, calls for 5% of the total amount to $9 trillion.

At around $6 trillion, the value of Bitcoin is about $280,000 per unit (1% of global value storage means $280,000). If it's about $9 trillion, it's about $420,000. Exchange rate (based on 1300) 1BTC = Approximately KRW 546.42 million

If banks expand their basic capital restricted on cryptocurrency holdings to 5%, 1BTC will be about 546.42 million won.

What's important is that the internal backlash from the BIS is no joke over the 5% price. It is difficult to say that BIS's opinions have always been the same, but internal conflicts seem to be severe as the bank is in crisis of survival.

It is largely classified into three types: BIS, IMF, FED, and US government.

1. Hard-line (no cryptocurrency allowed)

2. Acceptance (Acceptance after rapid institutionalization)

3. Wait-and-see (adjust regulatory pressure depending on the situation)

Giovanni Sabatini, Secretary-General of the Italian Banking Association "If the Basel Banking Supervisory Commission's (BCBS) regulation on cryptocurrency is implemented, banks will be disadvantaged in competition with cryptocurrency companies." Unlike cryptocurrency companies, banks can come up with appropriate safety measures. Therefore, we believe that we need a more comprehensive level of regulation. "I fully understand BCBS's intention to introduce the regulation, but this is certainly a very unfair system for banks."

In December last year, BCBS approved the " 2% restriction on banks' cryptocurrency holdings." In response, bank officials from each country protested against the regulations, pointing out that the bank's competitiveness is low.

To sum up

We are a bank that can control governments in each country. We have done well so far, and if we apply it that way, we can overcome "bitcoin." "It's crazy that we're scared of Bitcoin and regulating us. This will develop in favor of the cryptocurrency industry."

From the bank's point of view, both hardliners No. 1 and No. 2 are correct. What is important here is acceptance? Or not? It's the survival of the bank that has to come before it. What if we don't trust us? We have done well and will continue to do so. Behind this remark, It also includes the story, "If we get pushed here, we could die."

The reality of 'CBDC' and 'Bitcoin' as banks think

1. CBDC with infinite issuance, limited edition 'Bitcoin'

2. Border constraints CBDC, 'Bitcoin' that is used everywhere

3. Surveillance CBDC, Privacy 'Bitcoin'

4. Control CBDC, Free 'Bitcoin'

5. CBDC Continuously Falling, Continuous Rise 'Bitcoin'

I don't think I've been as busy as I am these days since the birth of BIS.

*There are two kinds of worries. What you can control and what you can't do. It's stupid if you're worried about something out of control. - DooriDoori -

#BIS #crypto2023 #BTC