It should be noted that banks mention the topic of cryptocurrencies quite often, and at times this is only done with the aim of damaging the reputation of digital assets. For example, in early June, representatives of the Federal Reserve Bank of St. Louis published a report that showed the change in the price of eggs over the past fourteen months. The trick was to show these statistics in Bitcoin and dollars.

The bottom line was that BTC is too volatile, that is, its price changes too often. Well, for people who are afraid of uncertainty and want stability, that’s a really big problem.

Eggs price in bitcoins

However, crypto enthusiasts have found value in this document as well. As it turned out later, Bitcoin eggs have become significantly cheaper in recent years amid the rise of the first cryptocurrency – it’s just that the bankers have only shown a convenient price point for their version. Read more about the story in a separate piece.

Who buys cryptocurrencies?

After the 2008 financial crisis, banking institutions were obliged to back up assets like loans with reserves, which is necessary in case of default. In this way, regulators prevent banks from becoming too dependent on any party. Similar requirements should also apply to cryptocurrencies, the committee said.

According to sourcesCurtoSlate, members of the Basel Committee propose to divide cryptocurrencies into two groups. The first group should include tokenised traditional assets, i.e. something like shares issued on a blockchain, and stabelcoins, which fall under certain criteria.

One of the criteria is the project’s ability to pass the basis test and the redemption risk test. The first of these determines whether a stabelcoin can be sold at or near parity with the real currency, and the second determines whether the coins can be redeemed at any time at a pegged value.

Splitting crypto-assets into groups

Stablecoins that do not qualify, as well as all other cryptocurrencies, fall into the second group. It is considered a higher risk group of digital assets. Most interestingly, it includes both algorithmic Stablecoins as well as Bitcoin and Etherium. And it is for the latter group that a reserve limit of up to 1 per cent of a bank’s core capital is proposed.

Notably, the Basel Committee published its first crypto proposal back in June 2021, but it was rejected by JP Morgan Chase and Deutsche Bank as “too conservative”. In it, the institution proposed that banks should hold equal reserves for all cryptocurrencies: that is, if a bank holds the equivalent of $100 in BTC, it should also hold $100 as a reserve.

If the second version of the proposal is approved, the world’s major banks could potentially hold billions of dollars in digital assets. It’s a major step that could encourage more investment in the industry. In the meantime, the published Basel Committee document will be considered until the end of September.

Read also: Securities and Exchange Commission rejects launch of Bitcoin ETF. And got a lawsuit.

In addition to cryptocurrencies, there is also good news in the NFT space: it has now been revealed that Meta is introducing support for unique tokens on its social network. Meta product manager Navdeep Singh shared screenshots on Twitter of what NFT will look like on Facebook.

In general, users will get a tab with ‘digital collectibles’ on their profiles where they can showcase their NFTs.

This is what Facebook’s NFT support will look like

The company will integrate cryptocurrency wallet support with NFT on Facebook. The unique tokens will be able to be turned into posts to be liked and shared. As a reminder, back in May there were rumours of an official announcement of NFT integration, with founder Mark Zuckerberg himself hinting at it at the time.

For now, unique token support features are only being tested, with only Polygon and Ethereum-based NFTs supported. Later, the developers promise to add support for Solana and Flow blockchains.


We believe that such recommendations from banking committees are a good sign for the cryptocurrency industry. Coins are currently in the midst of a prolonged serious decline, but the researchers suggest that digital assets can be contacted even in such circumstances. Apparently, they have discerned the potential of crypto and are not afraid to bet on it. That, in fact, is what they advise others to do, albeit with a clear risk management.


We discuss everything that is happening in the cryptocurrency industry in our cryptochat. There you can also talk about other blockchain-related topics.