The Bank for International Settlements (BIS) is working with several European Union central banks to develop a system to monitor and analyze international transfers in cryptocurrencies.
The Bank for International Settlements has announced the completion of the first phase of Project Atlas, which assessed the macroeconomic importance of crypto markets in several countries and selected decentralized finance (DeFi) protocols.
As part of the initiative, BIS collaborated with analysts from the European Central Bank (ECB), the German Federal Bank (Bundesbank), and the Netherlands Bank (DNB). They have jointly developed the concept of a monitoring system for international transfers made in cryptocurrencies.
The tool is intended to analyze market trends and provide information on the potential economic impact of cryptocurrencies in the region. The need to develop such a tool, according to BIS analysts, stems from the lack of regulatory clarity in the sector and large-scale collapses in the crypto space.
The concept developed under Project Atlas allows for the comparison of on-chain data from public blockchains and off-chain data from crypto exchanges. The monitoring system in its current version tracks BTC transactions between different centralized exchanges and records the geography of transfers. The main purpose of creating this tool is to enable central banks to assess the relative economic importance of the crypto ecosystem in different jurisdictions by evaluating cross-border flows.
In the next phases of Project Atlas, plans are underway to expand the system by integrating more data sources from the DeFi ecosystem. In particular, BIS plans to extract and analyze Ethereum on-chain analytics data.
Recently, IMF analysts mentioned the ongoing development of a tool for assessing potential crypto risks.
