In partnership with banks within the Eurosystem, the Bank for International Settlements is building a new data tracking system for crypto assets.
The Bank for International Settlements (BIS), in collaboration with the Eurosystem’s central banks, has announced the beginning of Project Atlas, a proof-of-concept investigation into the financial implications of digital assets and decentralized banking.
The BIS Innovation Hub Eurosystem Centre, De Nederlandsche Bank, and the Deutsche Bundesbank are working together on Project Atlas, which intends to simplify the data collection procedure from multiple crypto exchanges and public blockchains.
The project’s objectives include gathering on-chain and off-chain data, standardizing data collecting and monitoring procedures, and comparing project results to macroeconomic studies.
As present data on the cryptocurrency sector is dispersed over multiple protocols, market actors, and jurisdictions, with reporting frequently needing to be more regulated and standardized, the project’s main focus is on enhancing data gathering methods and platform development.
According to the project report, Atlas substitutes cross-border capital flows with transactions between Bitcoin network crypto exchanges and their physical locations.
The BIS’s endeavor to investigate the value of crypto assets and DeFi fits into a larger pattern of central banks and financial institutions acting to comprehend better and control the quickly expanding sector.
For instance, the BIS has already stressed the importance of legal clarity in creating central bank digital currencies (CBDC). The general manager of BIS, Agustn Carstens, observed that approximately 80% of central banks either don’t have the legal right to launch a digital currency under their current regulations or deal with ambiguous legal restrictions.
The BIS’s investigation of Project Atlas and the cryptocurrency market is a significant step toward developing a deeper knowledge of this developing sector. The endeavor reflects the growing growth of CBDCs and the ongoing discussion in the cryptosphere about the advantages and disadvantages of DeFi.
