In light of the recent risks to financial stability posed by the collapse of Stablecoin projects and DeFi lending platforms, the Bank for International Settlements (BIS) Innovation Hub has announced a new set of projects, including the development of an open-source crypto market intelligence platform.
Three projects are part of the “organization of central bank” work program for 2022. They are part of the upcoming Eurosystem Center, which is set to open in Frankfurt and Paris in the coming months.
The first major project focuses on the creation of a cryptocurrency market intelligence platform.
According to BIS, the project’s goal is to develop an open-source market intelligence platform that will shed light on market capitalizations, economic activity, and financial stability risks.
The failure of numerous stablecoin projects and decentralized finance (DeFi) lending platforms, such as Terra and USDD, was a major motivator for the project’s launch.
The Innovation Hub also stated that it will investigate and test potential cryptographic solutions that can withstand quantum computers’ vastly improved processing power.
Its purpose is to run use cases in various payment systems to see how the addition of quantum-resistant cryptography affects their performance.
The announcement also stated that the BIS Innovation Hub will work collaboratively with the Bank of Israel and the Hong Kong Monetary Authority (HKMA) on a new study on CBDCs and cybersecurity.
Also Read: Central Bank of Israel & Hong Kong Test Cyber Secure CBDC
In addition, the BIS Hong Kong Center will begin work on a new prototype for Phase 2 of Genesis, its green finance project, in collaboration with the UNFCCC. The blockchain, smart contracts, and other technologies will be used in this project to track, deliver, and transfer carbon credits in accordance with the Paris Agreement.
