BIS to develop Pyxtrial platform to monitor stablecoin reserves

The BIS is developing a monitoring system to assess the sufficiency of stablecoin backing. The Pyxtrial project has been among the organisation’s priorities for 2023.

In 2023, the #BISInnovationHub 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. Read more: https://t.co/565s9KK1gn pic.twitter.com/izlF1u0Q22

— Bank for International Settlements (@BIS_org) February 7, 2023

Among BIS’s other tasks:

• enhancing financial regulation and supervision;
• improving payments systems;
• experiments with CBDC;
• ensuring the safety of the financial sector and reducing its harm to the environment.

The London-based BIS Innovation Hub’s Pyxtrial project is designed to help central banks systematically monitor «stablecoins» and their balances.

The majority of central banks lack tools to monitor stablecoins and prevent asset-liability mismatches. Under the project, various technical solutions will be studied to help in forming policy foundations based on integrated data, — the press release said.

Regarding CBDCs, experts will continue testing AMM. The aim is to lower the cost of cross-border payments for retail customers.

In October 2022, the FSB at the G20 group concluded that none of the existing stablecoins meet the standards set for central-bank digital assets by the world’s largest economies.

Moody’s is developing scoring system for ‘stablecoins’, according to reports.

Earlier CryptoCompare analysts noted the decline in market share stablecoins from 12.4% in April 2022 to 1.71%. The cause was the TerraUSD collapse.