{"id":24058,"date":"2025-05-16T15:57:13","date_gmt":"2025-05-16T12:57:13","guid":{"rendered":"https:\/\/forklog.com\/en\/bis-and-new-york-fed-test-smart-contracts-for-monetary-policy\/"},"modified":"2025-05-16T15:57:13","modified_gmt":"2025-05-16T12:57:13","slug":"bis-and-new-york-fed-test-smart-contracts-for-monetary-policy","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bis-and-new-york-fed-test-smart-contracts-for-monetary-policy\/","title":{"rendered":"BIS and New York Fed Test Smart Contracts for Monetary Policy"},"content":{"rendered":"<p>The Bank for International Settlements (BIS) and the New York Federal Reserve&#8217;s Innovation Center have tested smart contract tools for managing monetary policy within tokenized systems, according to a <a href=\"https:\/\/www.bis.org\/publ\/othp95.pdf\">report<\/a> by BIS.<\/p>\n<p>The experiment was conducted under Project Pine, utilizing the ERC-20 standard and an access control system.  <\/p>\n<p>In hypothetical scenarios, central banks adjusted collateral criteria, modified interest rates on reserves, and created new instruments within ten minutes. <\/p>\n<p>According to BIS, smart contracts provided the &#8220;flexibility and speed&#8221; crucial for crisis response.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The technology allows for instant adaptation of parameters in response to unforeseen events, such as a collapse in collateral value,&#8221; noted the report&#8217;s authors.<\/em><\/p>\n<\/blockquote>\n<p>They stated this is the first step towards integrating blockchain into traditional central banking systems.  <\/p>\n<p>Asset tokenization could bring monetary policy into real-time operation, though it requires a technological overhaul, BIS warned. <\/p>\n<p>The report&#8217;s authors indicated the experiment confirmed the potential for automating key central bank functions with smart contracts\u2014from liquidity management to market stabilization.  <\/p>\n<p>Back in May, BIS <a href=\"https:\/\/forklog.com\/en\/news\/bis-reports-on-cryptocurrencys-role-in-global-trade\">calculated<\/a> the turnover of cryptocurrencies in global trade flows. At its peak in 2021, Bitcoin, Ethereum, USDT, and USDC accounted for $2.8 trillion or 12%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank for International Settlements (BIS) and the New York Federal Reserve&#8217;s Innovation Center have tested smart contract tools for managing monetary policy within tokenized systems, according to a report by BIS. The experiment was conducted under Project Pine, utilizing the ERC-20 standard and an access control system. In hypothetical scenarios, central banks adjusted collateral [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24057,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1430,54,26],"class_list":["post-24058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bis","tag-smart-contracts","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=24058"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24058\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/24057"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=24058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=24058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=24058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}