{"id":129386,"date":"2025-05-16T10:27:38","date_gmt":"2025-05-16T10:27:38","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129386"},"modified":"2025-05-16T10:27:38","modified_gmt":"2025-05-16T10:27:38","slug":"central-banks-testing-smart-contract-toolkit-under-bis-project-pine","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129386","title":{"rendered":"Central banks testing smart contract toolkit under BIS Project Pine"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsCentral banks are experimenting with smart contracts to implement monetary policy in tokenized environments, signaling a growing interest in integrating blockchain technology into traditional finance (TradFi).<br \/>\nAccording to a joint research study by the Federal Reserve Bank of New York\u2019s Innovation Center and the Bank for International Settlements (BIS) Innovation Hub Swiss Centre, smart contracts could offer central banks a flexible and rapid-response toolkit in a tokenized financial system.<br \/>\nThe study, dubbed Project Pine, tested a prototype \u201cgeneric customizable monetary policy tokenized toolkit\u201d for further research by central banks, according to a BIS report published May 15.<br \/>\n\u201cThe smart contract toolkit was fast and flexible,\u201d the BIS wrote. \u201cIn hypothetical scenarios, the central bank was able to add and change tools instantly.\u201d<br \/>\nThe report emphasized that if tokenization becomes widely adopted for money and securities, smart contracts could play a central role in how monetary policy is executed.<br \/>\nProject Pine system overview. Source: BISRelated: Bitcoin more of a \u2018diversifier\u2019 than safe-haven asset: Report<br \/>\nThis marks the \u201cfirst step\u201d in highlighting the potential benefits of tokenization for central banks, according to the BIS.<br \/>\nThe framework \u201cspeed and consistency\u201d was \u201cvalidated\u201d within a 10-minute hypothetical scenario where central banks quickly changed collateral criteria and exchanged liquid collateral for illiquid one amid falling collateral values.<br \/>\nThe smart contract framework also allowed central banks to deploy a new facility offering reserves and change the interest rates on these reserves in an \u201cimmediate\u201d implementation.<br \/>\nProject Pine, smart contract operations. Source: BISRelated: Coinbase faces $400M bill after insider phishing attack<br \/>\nSmart contracts, tokenization may help central banks<br \/>\nSmart contracts and tokenization technology may help central banks\u2019 rapid response to \u201cextraordinary events,\u201d the BIS report stated:<br \/>\n\u201cThis speed, coupled with the ability to adjust any of the parameters at any time, gives central banks flexibility in responding to unforeseen events and fast-moving crises.\u201d<br \/>\nWhile promising, the report also acknowledged that central banks will likely face infrastructure challenges, as most existing systems are not designed for these advanced use cases.<br \/>\nSmart contract testing scenario. Source: BISProject Pine employed Ethereum\u2019s ERC-20 token standard combined with another standard for \u201caccess control.\u201d<br \/>\nFinancial institutions have increasingly embraced tokenization in recent years.<br \/>\nAt the Consensus 2025 conference, Joseph Spiro, product director at DTCC Digital Assets, called stablecoins the \u201cperfect\u201d financial instrument for real-time collateral management for financial transactions such as loans or derivatives.<br \/>\nMagazine: Altcoin season to hit in Q2? Mantra\u2019s plan to win trust: Hodler\u2019s Digest, April 13 \u2013 19<a href=\"https:\/\/cointelegraph.com\/news\/central-banks-smart-contract-tokenization-pilot-bis?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsCentral banks are experimenting with smart contracts to implement monetary policy in tokenized environments, signaling a growing interest in integrating blockchain technology into traditional finance (TradFi). According to&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129386"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129386"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129386\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129386"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}