A report released on Wednesday by the Bank for International Settlements (BIS) and the Bank of England (BoE) has revealed that they have successfully developed a system to supervise asset-referenced stablecoins.
These are digital coins that are pegged to specific assets, such as fiat currencies. The project, called Pyxtrial, has created a prototype data analytics pipeline that allows supervisors to view near real-time data on the liabilities and assets of stablecoins.
This technology is a crucial initial step towards creating a tool that can support regulators in identifying potential issues with stablecoin backing and developing relevant policies.
The need for such technology is evident, as stablecoins are a rapidly growing and mostly unregulated sector with a market capitalization of $163.7 billion.
