The Bank for International Settlements (BIS) has revealed in its priorities for 2023 it will be working on a new platform to track the systemic monitoring of stablecoins.
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The so-called Project Pyxtrial is a new initiative to monitor stablecoin’s balance sheets, the organization said in its year’s work program. The BIS said that the majority of central banks “lack tools to systematically monitor stablecoins and avoid asset-liability mismatches.”
While the timeframe of the initiative remains unclear, the platform is expected to investigate “various technological tools that may help supervisors and regulators to build policy frameworks based on integrated data,” BIS said.
In January, the BIS published a bulletin in which it has described the risks associated with the crypto market. The organization also suggested three ways to deal with risks, including the prohibition of certain types of activities in the industry and its isolation from the traditional finance.
Earlier, reports said that credit rating giant Moody’s Corp started working on a scoring system for stablecoins as the market worth of $138 billion faces regulatory scrutiny over non-transparent business structure.
The rating agency reportedly wants to make an analysis of 20 stablecoins, examining attestations of their reserves. Although the system is in early innings, it won’t represent an official credit rating, a person close to the matter said.
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