The Bank for International Settlements announced the launch of a new set of projects targeting various aspects of traditional and crypto payments including a cryptocurrency market intelligence platform and security for retail.
BIS’s cryptocurrency market intelligence platform will be launched under the Eurosystem Centre initiative which seeks to provide assessed data about crypto projects. One of the reasons for the project’s start is the fall of numerous stablecoins projects and DeFi lending platforms such as Terra and others.
The move goes against the standard of relying on self reported information by unregulated firms when it comes to data on asset backing, trading volumes and market capitalization. The BIS also highlighted the ease with which quantum computers can break the cryptography used by traditional financial institutions to secure and settle payments. As a result, a Eurosystem Centre project will be dedicated to testing several cryptographic solutions and examining the overall performance of the traditional system.
Moreover, BIS’s Sela initiative will explore technological solutions for allowing CBDC issuance via intermediaries while ensuring greater security and lower costs. The BIS Innovation Hub’s Hong Kong Centre will also collaborate with the United Nations Framework Convention on Climate Change to develop the prototype for the second phase of its green finance project, Genesis.
