“The Bank of International Settlements (BIS) together with the innovative Hub of the New York Federal Reserve Bank conducted a test of smart contracts to manage monetary policy in the conditions of a token financial system. This is stated in the official BIS report. The experiment was conducted within the Pine project using the ERC-20 standard and controlled system. Central banks could in 10 minutes in […]”, – WRITE: Businessua.com.ua
Bank of International Settlements (BIS) in conjunction with the innovative Hub Federal Reserve Bank of New York conducted a test of smart contracts for management monetary policy in the conditions of a token financial system. This is stated in the official BIS report.
The experiment was conducted within the Pine project using the ERC-20 standard and controlled system. In modeled scenarios, central banks could change the conditions of security, regulate reserves rates and create new tools in 10 minutes.
BIS noted that smart contracts provided critical “speed and flexibility” to respond to financial upheaval.
“This technology allows you to quickly change the parameters in response to unpredictable events – for example, a sharp depreciation of assets,” the report said.
According to researchers, this is only the first step to integrating blockchain into the traditional central bank infrastructure. The potential of tokenization allows you to translate monetary policy into real time, but it requires a large -scale technological restructuring.
BIS emphasized that the experiment has proved the ability to automate the key functions of the central bank – from liquidity management to stabilization of markets – using smart contracts.
Earlier in BIS it was reported that in 2021 cryptocurrencies covered up to 12% of global turnover, which is equal to $ 2.8 trillion in peak period.
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