DeFi Data Project May Identify Inflated Crypto Vol
The BIS Innovation Hub has completed its first proof of concept for Project Atlas, a data platform for crypto and DeFi, enabling central banks worldwide to analyze crypto-asset data. The first iteration focused on cross-border Bitcoin flows and highlighting inflating cryptocurrency exchanges. The Netherlands and Germany participated in the project.
The BIS is tracking crypto due to its role in macroeconomics, as it already publishes data on cross-border flows. Although crypto-asset flows are insignificant for most countries, some jurisdictions may experience substantial crypto flows, likely due to weaker currencies.
Project Atlas integrates on-chain and off-chain blockchain network data, primarily from exchanges, to enhance on-chain flows. The BIS primarily focuses on country-related identifiers, with crypto exchanges providing feeds to various analytics platforms.
The BIS used on-chain data to monitor Bitcoin transactions between exchanges, revealing that larger exchanges typically have more transactions due to client Bitcoin transfers. This data helps identify exchanges potentially inflating their statistics, indicating areas for further investigation.
(With inputs from Shikha Singh)
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