The Bank for International Settlements decided to allow global banks to maintain a balance of cryptocurrencies starting from January 2025, not exceeding 2%. Where the decision specified the classification of cryptocurrencies into two groups and the way they are processed by banks.
According to Arabiya.net, the decision came a week after a research paper from Harvard University called on central banks to keep a balance of bitcoin in order to mitigate exposure to financial risks in the future.
For his part, the Managing Partner of X-Pay, Dr. Mohamed Abdel-Motaleb, said that the Bank for International Settlements (BIS) allowing global banks to keep a balance of cryptocurrencies not exceeding 2% is a good percentage and will be of great value because the banks’ investments are in the hundreds of billions.
And Dr. Muhammad Abdel-Muttalib added, in an interview with Al-Arabiya, today, Sunday, that the decision comes in light of the trend of financial institutions to enter heavily into cryptocurrencies, which contributes to reducing strong fluctuations in the market.
He explained that it is not clear which currencies will be included in the classification of the Bank for International Settlements, but it is expected by 90% that Bitcoin will enter the classification, while the position of the rest of the currencies remains unclear, and also stable currencies will enter the classification.
The partner director of X-Pay said that what is happening in the cryptocurrency market during the current period has been repeated twice before, but the current time is the first that comes amid global fears of a contraction in the global economy and high interest in banks, and the currencies have rebounded strongly after passing previous weaknesses.
Muhammad Abdel Muttalib added that cryptocurrencies will not end, some currencies will disappear and some companies will collapse, such as EVTX and Luna, but the disappearance of this technology is unlikely because it solves real problems.
This comes as the crypto winter reached new levels of coldness, as trading volumes decreased significantly during the past 24 hours, and momentum in the cryptocurrency market declined after bankruptcies and collapses hit, in addition to billions of dollars in withdrawals from a number of prominent names in the industry.
During the past 24 hours, cryptocurrency trading values fell by more than 55% in total, to record $22.4 billion. Stablecoins accounted for more than 92% of the trading value of $20.7 billion, while Bitcoin commanded 39.8% of the cryptocurrency market capitalization.
