The Basel Committee on Banking Supervision (BCBS) has recently published its study surrounding the exposure banks are witnessing in terms of cryptocurrencies.
This time, BCBS has shared its study data for the largest banks from all over the world that are exposed to cryptocurrencies.
Banks are exposed to an Enormous Crypto Value
According to the latest study, the largest banks in the entire world are exposed to a huge amount of cryptocurrencies. In terms of figures, it is $9 billion worth of cryptocurrencies that the study has established that the largest banks are exposed to.
The BCBS exists as an organization that has members from all over the world connected with financial institutions and central banks.
The jurisdiction of the BCBS is vast so the data it collects is highly reliable and most accurate.
The latest study surrounding the exposure of the largest banks to cryptocurrencies was published by Renzo Corrias.
Purpose of the Study
The purpose of the study is to reveal how central banks and commercial banking institutions are treating cryptocurrencies.
It also shows how much acceptance rate for cryptocurrencies is being recorded at the largest banks from all over the world.
The study is also aimed at setting up a global standard surrounding the way banks want to treat cryptocurrencies. It also provides information as to which jurisdiction is interested to invest in cryptocurrencies more than the other.
Banks’ Exposure to Cryptocurrencies
The study shows that the amount of exposure on the largest banks for cryptocurrencies amounts to just 0.14% of the total exposures at the banks.
When carrying out the study, a total of 19 banks from all over the world submitted their data so the BCBS could carry out its research.
Apart from the banks, BCBS also collected the research data from ten financial institutions. These institutions were based in the Americas.
Out of the 19 banks, there were 7 banks that participated in the research from the European region. Then there were 2 banks that participated from all over the world.
Banks’ Exposure to Cryptocurrencies
The study showed that out of all the cryptocurrencies, the largest exposure for the banks was with Bitcoin (BTC). The study confirms that 31% of the exposure is for Bitcoin at the banks followed by Ethereum (ETH) which has 22% exposure.
Then come stablecoins and altcoins that account for high exposure at the banks. These digital assets include USDT and USDC which are stablecoins.
Then come XRP, Cardano (ADA), Stellar (XLM), and Litecoin (LTC) which are the major altcoins in the cryptocurrency market.
The study goes on to confirm that these cryptocurrencies have a higher rate of survival and expansion compared to other cryptocurrencies all over the world.