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Taking lessons from recent market crashes and their potential reasons, authorities are trying to prevent them from repeating further.
The uncertainty of the Crypto market proved again when the Terra ecosystem collapsed, where its native token LUNA and algorithmic stablecoin UST lost almost all of their value. This brought many investors into serious doubt and skepticism regarding cryptocurrencies that started a ripple effect resulting in a massive sell-off in the crypto market, eventually leading to a market crash.
Now, in a series of actions taken by the authorities worldwide, the Innovation Hub of the Bank for International Settlements (BIS) has been announced. It said they would launch a new set of projects with various aspects on target regarding traditional and crypto payments. This would also include a project related to the crypto market intelligence platform along with providing security for central bank digital currency’s retail users.
Further details about BIS’s cryptocurrency market intelligence platform are outlined and will be launched under the initiative of Eurosystem Centre. This aims to provide a look over data about the projects related to cryptocurrencies. Recent incidents of numerous stablecoins and decentralized finance platforms have seen a fall where Terra (LUNA) network is the latest one. BIS’ project came in the wake of the requirement of such a regime that would ensure such an incident won’t happen again.
The official announcement regarding the project stated that the goal of this project is to create a market intelligence platform that will be open to everyone to throw light on economic activity, market capitalizations, and risks related to financial stability.
However, this move of BIS to launch a market intelligence project is against the existing rule where unregulated firms provide information by self-reporting system in the case of requiring the information related to trading volumes, market capitalization, and data about the asset backing. The Bank for International Settlements also outlined the frictionless process by which quantum computers can penetrate the cryptography traditional financial institutions use to secure and settle their payments.
So the Eurosystem Centre initiative project will focus on testing several cryptographic solutions and determining the performance of traditional systems’ working and approaches.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
