BIS has developed a global cryptocurrency monitoring system


The Bank for International Settlements (BIS) presented a proof of concept for a system for dynamically displaying the circulation of digital assets.

In 2018, work on the Atlas project was initiated by specialists from the Central Bank of the Netherlands.

The platform aims to help authorities gain a clear understanding of how, when and where cryptocurrencies are used.

The toolkit includes a number of dashboards. For example, the number of bitcoins convertible into fiat at a certain time in certain parts of the world.

Atlas accumulates data from both public blockchains and off-chain sources such as exchanges and individual participants.

Reuters pointed out the relevance of the development due to growing concern among regulators regarding the “danger” of cryptocurrencies due to their decentralized nature in light of the collapses of FTX and Terra.

The platform information gives a rough picture of activity, since it does not fully cover the wallets being created.

“Initial analysis shows that cross-border flows are significant from an economic point of view and are unevenly distributed across geographic regions,” BIS said in a statement.

Such macrostatistics are useful for central banks in the context of economic analysis and balance of payments statistics, experts noted.

In some countries, crypto transactions may represent a significant portion of cross-border transfers. They are often difficult to quantify due to existing data gaps.

“Central banks need to gain insight into the risks and opportunities that cryptocurrencies pose to TradFi“, BIS said in a statement.

A number of monetary regulators have gained access to the platform. Their feedback will be the basis for improving Atlas.

Previously, the organization’s experts warned that vulnerabilities in the digital asset market could pose risks to financial stability in emerging market countries.

Let us recall that the head of BIS, Agustin Carstens, called on the governments of all countries to create a regulatory framework for the introduction of digital currencies of central banks.

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