The Bank for International Settlements (BIS), a prominent global central bank that serves as an institution for other central banks, has introduced a new platform designed to facilitate the tracking of Bitcoin trading activities worldwide. This initiative aims to provide authorities with comprehensive insights into the utilization of the cryptocurrency, offering a clearer understanding of when, where, and how it is being employed.
Dubbed “Atlas,” the project began development five years ago at the Dutch Central Bank, a member of the BIS network. While the platform’s potential value was acknowledged, BIS noted that recent developments within the cryptocurrency ecosystem have affected its applicability.
The cryptocurrency landscape has witnessed a series of challenges over the past year, including institutional collapses, bankruptcies, market volatility, and regulatory pressures. These factors have contributed to a prolonged bear market that extended into 2023, prompting increased scrutiny from central banks.
Project Atlas visualises cross-border flows of cryptoassets as part of its first proof of concept. The project report, a cooperation with @Bundesbank and @DNB, was published today, read here: https://t.co/XieL6F3yLK pic.twitter.com/UGOHaQ9EkH
— Bank for International Settlements (@BIS_org) October 4, 2023
Atlas is described as a “proof-of-concept” system that aggregates data from both on-chain and off-chain activities. Addressing concerns about cross-border crypto flows, BIS highlighted the platform’s ability to provide central banks with valuable insights into adoption rates and crypto activities in various regions.
Despite the anonymous nature of cryptocurrency transactions, BIS acknowledges that pinpointing precise transaction data remains complex. The monitoring system is now available to a select group of test central banks, offering dashboards displaying data on Bitcoin transactions and conversions into U.S. dollars in specific regions and timeframes.
As central banks around the world hasten to monitor and understand the cryptocurrency landscape, many have announced plans to develop their own central bank digital currencies (CBDCs) to harness the potential of blockchain technology.
