Global regulator tightens stablecoin standards for top rankings
The Basel Committee for Banking Supervision has proposed new criteria for stablecoin s, aiming to differentiate them from more volatile cryptocurrencies like Bitcoin. A consultative document released on Thursday outlines 11 standards that stablecoin s must meet to be classified as Group 1b assets, considered lower risk than unbacked digital assets. The standards ensure that the reserve assets backing stablecoins are of high credit quality, have short-term maturities, and exhibit low volatility. This move is part of the committee’s broader efforts to manage the risks associated with digital assets in the banking sector. Breaking: Central Banks can hold up to 2% of their reserves in crypto starting 1 January 2025. Bank of International Settlements BIS says: The standard will permit 2% crypto reserve exposure among banks. BIS says the global banking system's direct exposure to crypto… pic.twitter.com/9Mqfv0abFZ — MartyParty (@martypartymusic) December 13, 2023 Cryp...