The Bank for International Settlements (BIS) and the Bank of England have published the initial results of Project Pyxtrial, a joint stablecoin project.
A stablecoin project is in the cards globally, the first results of which were announced recently. The Bank for International Settlements (BIS) and the Bank of England have jointly conducted the project. Meanwhile, the BIS included the initiative’s Project Pyxtrial results in a report. It is an exclusive monitoring project for stablecoins backed by assets.
However, the report underlined Project Pyxtrial was still a proof-of-concept, and not a launch-ready system yet. A key reason for that was the ongoing deliberations for crypto regulations, which haven’t reached a global consensus.
Further, the project would provide data to regulators and supervisors through a dashboard. The project solution, which includes application programming interfaces, a database, and a data model, will create the solution. It will evaluate the reserve assets of each stablecoin under its monitoring.
The report stated that the project won’t be entirely automatic, and said, “Pyxtrial does not assess asset quality, the rigor of asset valuations or the quality of the data sources used. Hence […] supervisors may need to play a role in setting out rules or guidance on data quality.”
Moreover, the system will match data of stablecoins from issuers and the blockchains or platforms that host them. However, a regulator would need to specify what data parameters an issuer would need to submit to the system. Broadly, it is a data collection, analysis, and storage platform. Real data on the platform will educate users about stablecoins’ assets and liabilities.
At the same time, the BIS report noted that the project’s operators would need extensive training. With time, though, the project will also be suitable for monitoring other digital assets, like bonds, tokenized securities, and others.
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