The Bank for International Settlements (BIS) has unveiled its strategic initiatives for the Innovation Hub network in 2023, focusing particularly on the systemic monitoring of stablecoins.
Established in 2019, the BIS Innovation Hub aims to foster exploration in emerging financial technologies, with operations spanning across Asia, Europe, and North America. Currently, it is engaged in 21 active projects alongside five that have been successfully concluded.
This year, the hub will intensify its efforts to enhance payment systems and explore Central Bank Digital Currencies (CBDCs), while also addressing the future of financial regulation and supervision and promoting sustainability within the financial sector.
A notable project in the London hub, named Pyxtrial, is set to develop a platform for monitoring the balance sheets of stablecoins. As many central banks currently lack adequate tools for the systemic oversight of stablecoins, which could lead to asset-liability mismatches, this initiative aims to identify technological solutions that will assist regulators and supervisors in formulating policy frameworks based on cohesive data.
Additionally, the hub is working towards better integration of its global network, emphasizing cross-centre projects such as Mariana, which connects the Singapore, Swiss, and the soon-to-be-launched Eurosystem centres, among others.
The Eurosystem Centre, which is hosted by the European Central Bank, the Bundesbank, and the Bank of France, and collaborates with all central banks within the euro area, is anticipated to open shortly.