More no crypto transaction should go under the radar of the Bank for International Settlements (BIS)? By developing an appropriate system, the bank of central banks thinks trace cryptocurrency exchange flows throughout Europe. A handful of European central banks have joined this initiative. Big plan !
Track all crypto transactions in Europe
Cryptocurrencies have hampered, are hampering and will continue to hamper central banks. If some of them accelerate the development of MNBC (or CBDC, in English), do not be surprised. It is through these central bank digital currencies that these institutions hope to slow down the evolution of Bitcoin, Ethereum, Dogecoin and other cryptos.
The BIS, like the United States Federal Reserve, is currently considering a titanic MNBC wholesale project. France, Switzerland and Singapore have joined this initiative called “Mariana”.
To demonstrate that it is not ready to give free rein to crypto-assets, the Bank for International Settlements has also called on other European central banks to develop a digital asset transaction monitoring project. Thanks to the support of the ECB, the Banque de France, the Deutsche Bundesbak and the Nederlandsche Bank, the BIS was able to set up an appropriate platform for monitoring the flow of cryptocurrencies and DeFi, reports Cointelegraph.
The platform in question will track all on-chain and off-chain crypto transactions on scholarships intended for this purpose. Even crypto currency exchanges on public blockchains will not be able to escape this system based on the Proof-of-Concept (PoC) mechanism. Ditto for cross-border flows which have recently become a specialty of Ripple.
Evaluate the macroeconomic relevance of cryptocurrency markets and DeFi protocolsthis is the main objective of the BRI with the “Atlas” project.
“ The data will allowanalyze flows structurally and to study the influence of price shocks, financial market developments and country characteristics on cryptocurrency flows », Explains the BIS spokesperson.
Atlas, search for transparency or interference from central banks?
THE published data by BIS Innovation Hub demonstrate that the crypto industry:
- lack of transparency ;
- carries potential risks of financial instability (given the collapse of Terra and FTX);
- etc.
But the first proof of concept of Atlas was conclusive. The image below highlights on-chain and off-chain data from public blockchains like Bitcoin (BTC) and crypto exchanges within reach of the BIS. Thanks to the nodes, this banking institution can even go so far as to collect cryptocurrency flows in any geographic location.
Atlas is not yet able to provide details regarding the location of crypto exchanges. BRI technicians will certainly think about working on this aspect in the near future.
Their methodology also pushes people to choose flows that are more or less lower than actual crypto transaction volumes. At their current stage, the Atlas interface already includes functional dashboards via which we can access:
- results of data aggregation and analysis;
- data on on-chain crypto transfers;
- figures relating to the movement of funds on an international scale;
- etc.
For the future, the BIS promised to improve Atlas by integrating other data sources, by taking data from Ethereum nodes and other DeFi protocols. It just goes to show that central banks, too proud of CBDCs, are the type to favor “totalitarianism”.
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