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BIS Innovation Hub sets sights on stablecoin monitoring

BIS Innovation Hub sets sights on stablecoin monitoring

The Bank for International Settlements has set out the plans for its Innovation Hub network in 2023, including work on the systemic monitoring of stablecoins.

Established in 2019 to support exploratory work into new frontiers in financial technology, the BIS Innovation Hub has centres across Asia, Europe and North America working on 21 ongoing and five concluded projects.

This year, the hub will increase its focus on improving payments systems and experimenting with CBDCs; on shaping the future of financial regulation and supervision; and on greening and securing the financial sector.

A new project in the London centre, called Pyxtrial, aims to develop a platform to monitor stablecoin's balance sheets. Most central banks lack tools to systemically monitor stablecoins and avoid asset-liability mismatches, says BIS. The project will investigate various technological tools that may help supervisors and regulators to build policy frameworks based on integrated data.

Meanwhile, the hub is looking to get more integration of its global network with more cross-centre projects such as Mariana, which connects the Singapore, Swiss and upcoming Eurosystem centres, and others.

That Eurosystem Centre - hosted by the European Central Bank, the Bundesbank and the Bank of France and working with all euro area central banks - is expected to open soon.

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