Bitcoin Suisse Chair Considers EU Crypto Ban Unlikely, Advocates for Firewall
Bitcoin Suisse chair Luzius Meisser rules out the likelihood of the EU prohibiting crypto. Instead, the Swiss crypto firm chair believes the EU would likely erect a firewall to distinguish the conventional financial system from the digital ecosystem.
Meisser believes that integrating a firewall to keep the crypto ecosystem distinct from the conventional financial system would yield the best approach. Its accomplishment will stimulate longevity in the digital asset industry.
Support for Containment Strategy
In his address during the Bitcoin conversation on January 30, Meisser supported the containment strategy as among the approaches the Switzerland firm would utilize. The crypto firm executive lauded the containment strategy as yielding benefits to the crypto while safeguarding the conventional finance marketplace.
Meisser revealed that the EU lawmakers are portraying signs of pursuing containment. He clarified that the EU prioritizes protecting the traditional financial system to overcome the toxicity emerging from the crypto economy. Meisser added that the containment would shield the cryptos from the faults and mistakes inherent in conventional financial systems.
Meisser reflection on the strict restrictions imposed by EU lawmakers portrays that the containment strategy is a viable mechanism. In particular, the EU lawmakers voted in favor of obliging banks seeking crypto holdings to match euro capital for its equivalent held in crypto. Meisser observed that the restrictions closely match the obligations formulated by the Basel Committee tasked with banking supervision.
Capping Banks Exposure Limit to 2%
As the international standard setter, the Basel Committee proposes extreme crypto rules. Meisser illustrates the shift from 1% to 2% set to become effective in early 2025 targets to limit the exposure to the digital assets ecosystem.
Capping the bank’s exposure to the digital ecosystem at 2% is projected to safeguard it against exposure to crypto volatility. The cap implies that the bank should reserve bitcoins within its equity, matching those held by the clients. Meisser considers the latest requirement extreme and typically prohibitive to banking with bitcoins.
Meisser perceives the caps as ruling out the possibility of running conventional bank accounts while the client claims bitcoin. The revised Committee’s rules dismiss the recognition of crypto as collateral. The provision makes it challenging for conventional banks to advance loans clients intend to secure via crypto holdings. Unless prohibited, Meisser regretted that banks could exploit the leeway to store cryptos.
Meisser rules out the imposition of an outright ban on the crypto as such contradict the liberal political order. Nonetheless, he ruled out instances that the lawmakers would embrace the laissez-faire approach since that defeats their purpose of existence.
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