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Crypto Tracking System ‘Project Atlas’ Initiated By BIS With Major European Banks

The Bank for International Settlements (BIS) created a proof-of-concept (PoC), named Project Atlas, for a system to track the on-chain and off-chain transactions from cryptocurrency exchanges and public blockchains including Bitcoin.

BIS will work with Deutsche Bundesbank, De Nederlandsche Bank, the European (EU) Central Bank, and the Bank of France to measure the macroeconomic relevance of cryptocurrency markets and decentralized finance (DeFi) protocols.

Currently, Project Atlas’ dashboard pictures the results of data aggregation and analysis, including on-chain transfers and global funds movement. The PoC’s overview will showcase cross-border flows and will provide a means for Central Banks to evaluate the relative economic significance of the cryptocurrency ecosystem across different jurisdictions.

Benzinga's Future of Digital Assets conference, scheduled for Nov. 14, is poised to be a pivotal gathering for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

Also Read: Crypto May Exacerbate Financial Crises In Emerging Economies: BIS Warns Of 'Illusory Appeal'

BIS Innovation Hub

BIS Innovation Hub highlighted some details of the PoC which plans to provide insights, information, and economic implications of the sector that lacks transparency thereby posing a threat to the financial stability. Remarkable failings in the sector include the Terra/LUNA algorithmic stablecoin collapse in 2022.

Off-chain data from cryptocurrency exchanges combined with on-chain data from public blockchains will be gathered by nodes. The project will start with tracking cryptocurrency flows across geographical locations.

The initial approach uses transactions credited to centralized exchanges in the Bitcoin network, along with the location of those exchanges as a proxy for cross-border capital flows.

Going forward, the project looks to incorporate more data sources, while extracting and analyzing data from Ethereum network nodes and DeFi protocols.

Read Now: BIS, Ripple Team Up To Make Cross-Border Payments Faster And Cheaper

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours 

Photo: Unsplash

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