New York Fed and BIS Release Research Report Testing Tokenized Currency Policy Tool

Blockbeats
05-16

BlockBeats News, May 16. The Federal Reserve Bank of New York and the Bank for International Settlements (BIS) jointly released a research report titled "Project Pine," testing the feasibility of using smart contracts to implement monetary policy in the tokenized financial market. The Project Pine research report shows that the New York Fed Innovation Center and the BIS Innovation Hub jointly developed a prototype of a smart contract-based central bank monetary policy implementation toolkit.

This toolkit supports operations such as interest rate payments, asset purchases, collateral management, and has been tested across 10 historical simulation scenarios, including market turmoil and liquidity crunch situations. The report points out that smart contracts have the ability to quickly deploy and adjust monetary policy tools, providing flexibility and efficiency for future central bank policy execution in a tokenized financial system, but also emphasizes the need to pay attention to interoperability, data standards, and potential operational risks.

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