If banks offer cryptocurrencies, they will have to cover the risks in such a way that their customers do not run any risk. The Basel Committee on Banking Supervision has just published a proposal on the regulation of cryptocurrencies.

The committee's proposal could inspire prudential obligations in this area worldwide. Banks will also have to monitor the purely technological risks of cryptocurrencies such as the stability of the network and the blockchain that underlies it, the reliability of the blockchain nodes to avoid their manipulation, the adequate protection of the keys of the person who owns the cryptocurrency... All this requires a famous increase in skills and crypto expertise for the head of the banks. If the bank fails to correctly assess the risks of cryptocurrencies, the prudential authorities will have to tighten the stress tests required of banks, request additional provisions or simply limit the crypto activity of banks. Of course, central bank digital currencies such as the digital Euro fall outside this Basel Committee proposal. It would be like regulating yourself. The committee's proposals are currently subject to consultation.

Note that the Basel Committee on Banking Supervision is a forum composed of representatives of 27 main central banks and other prudential authorities - to finally regulate cryptocurrencies. The Basel Committee, a sort of UN of central banks, sets the tone for the rest of the world when it comes to prudential obligations. These define the way in which banks will cover the risks of the cryptocurrencies that they would integrate into their offer.