The Bank for international Settlements also known as the central bank of central banks, now allows their members to put up to 1% of their reserves into Bitcoin

Source: https://www.blocktrainer.de/wp-content/uploads/BIS-Bericht-2022.pdf

The Bank for international Settlements also known as the central bank of central banks has just released a document where they allow their members (central banks) to put up to 1% of their reserves into Bitcoin.

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Over the past few years, the cryptoasset market has rapidly grown. Since the publication of the
first consultative document the cryptoasset market has expanded further, though during the past six months the aggregate value of the market has contracted significantly. While the cryptoasset market remains small relative to the size of the global financial system, and banks’ exposures to cryptoassets are currently limited, its absolute size is meaningful and there continue to be rapid developments. The Committee believes that the growth of cryptoassets and related services has the potential to raise financial stability concerns and increase risks faced by banks.

I'm no expert, but this sounds to me like they are afraid about speculative attacks and allow the possibility for central banks to hold Bitcoin as a hedge, the same way they hold gold reserves. Could be wrong on that, but why would they perceive it as a threat and at the same time allow it's members to hold it on the balance sheet otherwise?

I don't think that central banks will now rush to buy Bitcoin, but it's an interesting development and shows that Bitcoin is clearly no longer just seen as a fad that will pass but taken quite seriously by this institutions.

Submitted July 02, 2022 at 08:21AM by Ima_Wreckyou https://bit.ly/3IbUW6c