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<p>The Bank for International Settlements (BIS) and its Eurosystem partners are making strides in understanding the macroeconomic implications of cryptoasset markets and Decentralized Finance (DeFi).</p>
<p>Dubbed Project Atlas, this collaborative initiative combines off-chain and on-chain data to offer a comprehensive overview of the industry, and it may revolutionize how central banks approach the analysis of cross-border capital flows.</p>
<h2 id="project-atlas-focuses-on-harmonizing-crypto-and-defi-data">Project Atlas focuses on harmonizing crypto and DeFi data</h2>
<p>Project Atlas aims to navigate the fragmented landscape of cryptoasset data. Though an abundance of data is available across various protocols, jurisdictions, and market players, there is no standardized framework for reporting, making it difficult to draw actionable insights. Project Atlas focuses on harmonizing this data by improving collection methodologies and platform development.</p>
<p>"The data on cross-border flows are relevant for areas like payments and macroeconomic analysis," stated Cecilia Skingsley, Head of the BIS Innovation Hub.</p>
<h2 id="atlas-combines-off-chain-and-on-chain-data">Atlas combines off-chain and on-chain data</h2>
<p>In its proof of concept stage, Atlas combines data from crypto exchanges (off-chain) with granular data extracted from public blockchains (on-chain). It uses transactions between crypto exchanges in the Bitcoin network and the geographical locations of these exchanges as a proxy for assessing cross-border capital flows.</p>
<p>An initial review of the data indicates that cross-border flows are economically substantial and unevenly distributed geographically, offering a novel viewpoint for policymakers and analysts alike.</p>
<p>Atlas is designed to serve a variety of stakeholders. While researchers can delve into the micro-data, policymakers can access tailored dashboards that offer quick insights. "I am excited about the potential and future developments of this project," remarked Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank.</p>
<h2 id="project-atlas-could-be-a-valuable-tool-for-the-central-banking-community">"Project Atlas could be a valuable tool for the central banking community"</h2>
<p>The project showcases what can be accomplished when interdisciplinary teams collaborate. "Project Atlas could be a valuable tool for the central banking community for years to come," noted Olaf Sleijpen, Executive Board Member at De Nederlandsche Bank.</p>
<p>The success of the Atlas proof of concept marks a significant milestone in how central banks can harness data to better understand cryptoasset markets and their macroeconomic implications. The project has potential applications in assessing financial stability risks and offers a foundational layer for more in-depth, holistic analysis of existing data.</p>
<p>As decentralized finance continues to influence the global financial landscape, initiatives like Project Atlas offer valuable insights into how these emerging asset classes interact with traditional markets. In a rapidly evolving financial ecosystem, tools like Project Atlas could become indispensable for central banks seeking to balance innovation with regulatory oversight.</p>

BIS announces Project Atlas to understand macro implications of crypto and DeFi

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