Frances Coppola on this:

Dear Finbold, the BIS is not "allowing banks to keep 1% of reserves in Bitcoin". It is actually severely limiting banks' exposure to Bitcoin and other Group 2 crypto assets. AFAIK no other asset class has an absolute capital exposure limit like this. https://finbold.com/bank-for-international-settlements-to-allow-banks-to-keep-1-of-reserves-in-bitcoin/

And some other Tweets of hers are along the same lines.

Imo this the wrong approach because it forces banks to sell btc when the price goes up to remain under the 1% limit which defeats the whole purpose of holding? The amount they would be allowed to hold should be a fixed amount of BTC

For what it's worth I'm currently a bitcoin bear short term.