INDIA: The BIS, a developer of public technological solutions to support central banks and improve the functioning of the financial system, has played a prominent role in shaping the worldview of crypto. In its view, private financial players are moving the needle on the sentiment towards digital assets for transactions, putting them at an advantage over central banks across the world. However, the BIS sees CBDCs as a game changer for the global payments system, incorporating payments on a distributed ledger for settlements in wholesale as well as retail transactions.
Project Atlas is a far more ambitious move than BIS’s collaborative projects between a few central banks to see how technological prowess can enhance the payment systems’ potential. The platform combines on- and off-chain information, creating a layered approach to data vetting and tailored statistics for central banks. The first proof of concept of Atlas successfully showcases how to collect, clean, and analyze data relevant to central banks’ mandates. This also extends to any data discrepancy or misinformation.
Regulations and country-specific policies could become more nuanced based on real-time data from this platform. This will lead to better engagement between public and private stakeholders due to enhanced information sharing and a better understanding of any implications for the existing monetary system. Going by the information provided by the BIS, stakeholders can look forward to state-of-the-art on-chain and off-chain data that could improve the market integrity and accountability of all players. This, in turn, can greatly benefit central banks.
As central banks gain more insights into the trillion-dollar crypto asset markets, they will also be better prepared to respond to market volatility and potential disruptions, which could boost financial stability and investor sentiment. The creation of Project Atlas and its focus on crypto-asset markets and DeFi bolsters the growing recognition of the importance of blockchain-based digital assets in the broader financial landscape. The implications of this initiative are likely to extend to regulatory and policy responses, risk assessment, and international cooperation in the evolving world of crypto assets and DeFi, finally culminating into an effective instrument for global crypto adoption and facilitation.
Source: Rajagopal Menon, Vice President, WazirX
 has launched Project Atlas, a platform that combines on- and off-chain information to monitor crypto asset markets and decentralized finance (DeFi). The project aims to provide tailored statistics for central banks, improve market integrity and accountability, and enhance efficiency while maintaining security and stability in the global financial system.){kind=link}