BIS and European Central Banks Work on Crypto & DeFi Monitoring System

BIS Partners with European Central Banks to Create Crypto & DeFi Monitoring System

"BIS Introduces 'Project Atlas' in Partnership with European Banks to Monitor Crypto & DeFi Trends"

The Bank of International Settlements (BIS) has launched Project Atlas, a collaborative endeavor with the Deutsche Bundesbank and De Nederlandsche Bank. The project seeks to uncover the macroeconomic impact of crypto assets and decentralized finance (DeFi).

Project Atlas is designed to bridge the information gap by amalgamating various data sources to highlight the broader economic implications of crypto and DeFi. Specifically, the platform will merge off-chain information (data external to blockchain ledgers) with on-chain data (public blockchain information acquired through nodes).

Elaborating on this, the BIS statement read, "The unique advantage of integrating off-chain and on-chain data is the ability to produce new statistical insights while simultaneously refining existing data."

Central to the initiative is the capability to determine digital asset movements across geographical regions. Preliminary results show that while traffic between cryptocurrency exchanges is relatively minuscule in contrast to on-chain activities, its economic impact is decidedly notable.

The project employs Bitcoin network transactions linked to cryptocurrency exchanges, coupled with their geographical locations, as an indicator of transnational capital movements. However, due to challenges in accurately determining exchange locations and other inherent data imperfections, these figures are deemed to be conservative approximations of the actual scope.

Notably, the European Central Bank and the Bank of France have also played pivotal roles in Project Atlas.

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Oct 05, 2023