{"id":60793,"date":"2023-10-04T07:42:29","date_gmt":"2023-10-04T11:42:29","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=60793"},"modified":"2023-10-04T07:42:55","modified_gmt":"2023-10-04T11:42:55","slug":"bis-eu-central-banks-establishing-crypto-tracking-system","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bis-eu-central-banks-establishing-crypto-tracking-system\/","title":{"rendered":"BIS, EU Central Banks Establishing Crypto Tracking System"},"content":{"rendered":"\n

The Bank of International Settlements and other European Central banks are developing an international cryptocurrency tracking system.<\/p>\n\n\n\n

\"BIS,<\/figure>\n\n\n\n

The Bank of International Settlements (BIS) has devised a proof of concept (PoC) for a system that can track on-chain and off-chain transactions from cryptocurrency exchanges and public blockchains, such as Bitcoin.<\/p>\n\n\n\n

With the Deutsche Bundesbank, De Nederlandsche Bank, European Central Bank, and the Bank of France, BIS has announced a successful PoC called Project Atlas to gauge cryptocurrency markets' macroeconomic relevance and decentralized finance (DeFi) protocols.<\/p>\n\n\n\n

The BIS Innovation Hub\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> published the concept that aims to provide insights, information, and economic implications of the sector, citing a lack of transparency and potential threats to financial stability exemplified by high-profile failures in the crypto-space, such as the Terra\/LUNA algorithmic stablecoin collapse in 2022.<\/p>\n\n\n\n
\"\"

Project Atlas's first proof of concept aims to track on-chain and off-chain data from public blockchains and cryptocurrency exchanges. Source: BIS Project Atlas<\/em><\/figcaption><\/figure>\n\n\n\n

The initiative merges off-chain data from cryptocurrency exchanges with on-chain data gathered by nodes from public blockchains.<\/p>\n\n\n\n

Project Atlas tracked cryptocurrency flows across geographies in the initial incarnation of the proof-of-concept.<\/p>\n\n\n\n

The initial method employs Bitcoin network<\/a> transactions attributed to centralized exchanges and the location of those exchanges as proxies for cross-border capital flows.<\/p>\n\n\n\n

Given that the country of origin of exchanges is not readily discernible, the methodology observes that flows are likely lower-bound estimates of actual transaction volumes.<\/p>\n\n\n\n

Despite this, the initial pilot for Project Atlas indicates that inter-exchanges are “significant and substantial economically.”<\/p>\n\n\n\n

\"\"
The Project Atlas dashboard show on-chain transfers on the Bitcoin network as well as cross-exchange transactions. Source: BIS\u00a0Project Atlas<\/em><\/figcaption><\/figure>\n\n\n\n

In its current incarnation, Project Atlas features a front end with dashboards that visualize the outcomes of data aggregation and analysis, such as on-chain transfers and global fund movement.<\/p>\n\n\n\n

The PoC will provide an overview of cross-border transactions and a means for Central Banks to assess the relative economic significance of the cryptocurrency ecosystem<\/a> in various jurisdictions.<\/p>\n\n\n\n

\n

\u201cThe data will allow flows to be analyzed structurally and the influence of price shocks, financial market developments and country characteristics on crypto flows to be investigated.\u201d<\/p>\n<\/blockquote>\n\n\n\n

In order to advance to the next chapter of development, the project will continue to incorporate more data sources\u00a0while also extracting and analyzing data from Ethereum network<\/a> nodes and implementing DeFi protocols.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of International Settlements and other European Central banks are developing an international cryptocurrency tracking system. The Bank of International Settlements (BIS) has devised a proof of concept (PoC) for a system that can track on-chain and off-chain transactions from cryptocurrency exchanges and public blockchains, such as Bitcoin. With the Deutsche Bundesbank, De Nederlandsche Bank, […]<\/p>\n","protected":false},"author":56,"featured_media":60798,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,73],"tags":[772,152,8508,202,197,4685,1651,335,1502],"class_list":["post-60793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-defi-news","tag-bis","tag-bitcoin","tag-bitcoin-regulation-2","tag-blockchain","tag-defi","tag-europe","tag-european-union","tag-government","tag-regulation"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/10\/BIS-Bank-for-International-Settlements-1000x600-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/60793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=60793"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/60793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/60798"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=60793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=60793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=60793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}