BIS Innovation Hub to Launch Crypto Market Intelligence Platform

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Key Takeaways

  • BIS Innovation Hub will expand its portfolio in the areas of green finance and supervisory and regulatory technology.
  • According to the press release, the crypto market intelligence platform will create an open-source market intelligence platform to shed light on economic activity, market capitalizations, and risks to financial stability. 

The Bank for International Settlements (BIS) Innovation Hub launched a new set of projects targeting various aspects of traditional and crypto payments. These include setting up a crypto market intelligence platform, Post-quantum cryptography: securing the privacy of payments systems, cyber security for a retail CBDC, and increasing the transparency of climate-related disclosures.

The new cryptocurrency market intelligence platform will be open-source and aims to shed light on economic activity, market capitalizations, and risks to financial stability, according to the official announcement. In the press release, BIS mentioned the ease with which quantum computers can break the cryptography used by traditional financial institutions to secure/ settle payments. The project will investigate and test potential cryptographic solutions that can withstand the vastly improved processing power of quantum computers. 

Apart from all this, BIS’s Sela initiative will explore technological solutions and options for allowing CBDC issuance via intermediaries while ensuring greater security and lower costs. BIS plans to build an open-source database of corporate reports along with a full-text search engine to create transparent climate-related disclosures. BIS Innovation Hub’s Hong Kong Centre will also collaborate with the United Nations Framework Convention on Climate Change (UNFCCC) to develop the prototype for the second phase of its green finance project, Genesis.

The Cyber security project of BIS includes a partnership with Israel’s central bank. Sela will take inspiration from the Bank of Israel’s efforts and from the HKMA learnings from the earlier Aurum project,to explore tech solutions to allow intermediaries to provide CBDCs to users without the related financial exposure,with a strong focus on cyber security. Project Aurum studies the benefits/ challenges of tiered architectures for the distribution of retail CBDC through commercial banks and payment service providers. 

BIS is now becoming increasingly aware of the environmental impacts of crypto mining and importance of green finance. A very recent report by BIS stated that since crypto mining intermediaries can choose which transactions they add to the ledger and in which order, they can engage in activities that would be illegal in traditional markets, such as front-running and sandwich trades.

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Saniya Raahath
Saniya Raahath

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