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The Bank for International Settlements (BIS) and the Bank of England (BoE) introduced a prototype solution capable of semi-automatically overseeing reserves of stablecoins and other tokenized assets. This solution has successfully completed the proof-of-concept phase, with its implementation contingent on regulatory advancements.
The Bank for International Settlements (BIS) and the Bank of England (BoE) presented the findings of Project Pyxtrial, a collaborative effort aimed at developing a solution for the real-time oversight of stablecoin reserves.
This solution is intended to gather on-chain data from blockchains and platforms that manage the assets backing stablecoins. The collected data is then compared with reserve asset information supplied by issuers. The system is structured to collect and match data on an hourly basis.
The solution developed includes:
- data model;
- database;
- application programming interfaces (API).
The processed information will be accessible to regulators and supervisors via a customizable dashboard. The system must be fully automated, as regulatory requirements for issuers may differ across regions. Specifically, users will have the power to define essential data from issuers and the frequency of its submission.
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The report indicates that Project Pyxtrial is currently only a proof-of-concept. Despite its advantages, the solution is not yet ready for deployment, as the regulatory framework it depends on is still under development.
By the end of 2023, approximately 60% of countries had established a regulatory framework for the stablecoin market.
The report further mentions that the solution is technically designed as a modular system, allowing for easy adaptation to monitor other digital assets, such as tokenized securities or bonds. The application interface will enable the solution to adjust to specific regulatory requirements and integrate with existing systems. The developers also foresee the potential for future enhancements.
One of the most significant challenges in launching a complete system is maintenance. The authors of the report emphasize that operators will require extensive knowledge of blockchain technology and regulations to effectively manage the solution. Consequently, training users of the system may prove to be a complex endeavor.
The report also notes that Project Pyxtrial utilized some data from Project Atlas, another BIS initiative aimed at monitoring cryptocurrency payments, for its proof-of-concept.
Concerns regarding the influence of stablecoins on the global economy are increasingly rising, prompting regulators in various nations to revise the requirements for stablecoin issuers. Recently proposed new regulations have emerged in Hong Kong, the UAE, and the European Union.
Сообщение Stablecoin Collateral Monitoring Solution Developed появились сначала на CoinsPaid Media.
