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again the basel committee (whom drafted regulations for the BIS(bank of international settlements)) are recommending that from jan 2026 (previously drafted to execute/implement jan 2025) want banks of its membership(which czech is part of) to publish their bitcoin holdings from jan 2026 and once they reach 2%, to then only hold.. and then to mitigate risk, when the fiat market price of the hoard reaches 5% of their reserve they have to start selling some coin. so 5% is the upper limit of retention, 2% is upper limit of initial purchase
franky1
is this what you are referring to? Frankly I am trying to keep up to date with information like this, but I missed this apparently. Now I am asking, is such a policy binding or is it a mere suggestion?
What would be the consequences if a bank decides to go beyond the initial 2% upper limit and aren't their ways through various vehicles to somehow increase the exposure beyond the proposed 2%?
yep thats the one. its based on the BIS
they can BUY 2%.. but thats it. then they can sit/hoard that allotment of bitcoin until the FIAT PRICE of such reaches a 5% of reserve value, which they then have to sell some coin to mitigate risks
as for enforceability.. the basel committees information shows that banks have to report DAILY their exposures(starting from a 0.3% of fiat reserve). and at the buying coin phase if they exceed 2% of the banks fiat reserve, the banks have to either raise their fiat reserves they have to balance the books or sell some coin(show outflows) to be in the buy-in limit exposure, and they cant buy any more(cant show more inflows), else be in breach of regulation..
as for the hoard and fiat valuation limit of 5% again if the bought coin at 2% (with no further buy-in) allocation limit, then at fiat price valuation exceeds 5% the banks have to raise their fiat reserves to balance out or sell coin(show outflows)
because they cant just magic fiat out of no where to add more fiat reserves to balance the books. they will end up having to sell coin to stay in line with limits or be in breach
also to note the 2%(inflow limit)-5%(before outflow requirement) is total exposures of all instable crypto assets types combined (includes certain altcoins and ETFs)
so dont expect it to be 2% of central banks reserve being 100% directly owned btc..
as for ways around the limits.. they can exceed the limits, but only if they provide contracts(as part of daily reports) where the contracts expire within 30 days. so they can only exceed limits if they have a short term deal going on
..
the BIS set regulations for international banks(central banks).
initially the basel committee set the implementation of that for jan 2025.. but it seems they delayed it to implement in jan 2026.. so they will wait for the bitcoin correction(POST ATH) season to start rather than a mad run on the money leading upto the ATH season this year
heres a list of
central banks involved in the BIS regs ..
as for gossip of impact on bitcoin market price:
the central banks will not be using normal public crypto exchanges which WE use for price valuations.. they will be doing private deals on OTC trade services, so its not like you will see a big wall purchases on the exchanges we are familiar to
