PANews reported on May 16 that the Federal Reserve Bank of New York and the Bank for International Settlements (BIS) jointly released a research report "Project Pine" to test the feasibility of using smart contracts to implement monetary policy in tokenized financial markets. The Project Pine research report shows that the New York Fed Innovation Center and the BIS Innovation Hub have jointly developed a prototype of a central bank monetary policy implementation toolkit based on smart contracts. The toolkit supports operations such as interest rate payments, asset purchases, and mortgage management, and has passed tests in 10 historical simulation scenarios, including market turmoil and liquidity tightening. The report pointed out that smart contracts have the ability to quickly deploy and adjust monetary policy tools, providing flexibility and efficiency for the central bank's policy implementation in the tokenized financial system in the future, but also emphasized the need to pay attention to interoperability, data standards and potential operational risks.
New York Fed and Bank for International Settlements Release Research Report Testing Tokenized Monetary Policy Tools
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