BIS and European Central Banks Developing a Crypto and DeFi-Tracking System
Under the initiative “Atlas,” the Bank for International Settlement (BIS) and four central banks from Europe are working together to track the global movement of bitcoin assets.
The banks, particularly the European Central Bank, Banque de France, Deutsche Bundesbank, and Nederlandsche Bank, launched a Proof-of-Concept (PoC) to monitor Bitcoin transactions that took place both on-chain and off-chain.
“Project Atlas” aims to make financial regulators and issuers around the world better at managing crypto assets.
According to the report released on the project, it states that:
The study highlights the rapid growth of decentralized finance (DeFi) and related products, but regulators have found it difficult to exercise control.
Because of this, fraud has proliferated and platforms have collapsed, which could have been avoided if officials had access to the relevant data.
According to the Financial Stability Board (FSB) and International Monetary Fund (IMF), broad adoption without sufficient regulatory oversight might undermine governmental policies.
Project Atlas is using powerful analytical tools to dissect vast volumes of data that will be shared around the world’s central banking community in order to stay ahead of this problem.
Central banks are urged to embrace the use of customized platforms by the Bank of International Settlements (BIS). BIS claims that the current platform is not suited to the requirements of the regulator and offers little information on trade.
The ability of central banks to consolidate information throughout their jurisdiction is constrained by the fact that the procedure for gathering data across numerous blockchains is frequently opaque, according to the statement.
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