The Bank for International Settlements launches a visual data platform, providing comprehensive data and laying the foundation for regulation.

Given the development of cryptocurrencies and DeFi in the global emerging financial ecosystem, the Euro Area Innovation Hub of the Bank for International Settlements (BIS) has collaborated with the Dutch Central Bank and the German Federal Bank to launch the Atlas project. This initiative aims to establish a data platform to uncover the macroeconomic relevance of the cryptocurrency market and decentralized finance (DeFi), in order to reduce their opacity and potential risks, as well as to lay the groundwork for future cryptocurrency regulation.

Atlas Project Combines On-Chain and Off-Chain Data

The Atlas Project aims to provide data suitable for central banks and financial regulatory institutions. It combines off-chain data collected from cryptocurrency exchanges with on-chain data collected from nodes on public blockchains for data cleaning, analysis, and review, providing users with tools to more accurately assess the economic significance of these markets.

In a visual chart format, the Atlas Project serves researchers, analysts, and policymakers, supporting structural analysis and other user-friendly tools.

While there is a wealth of public data in the cryptocurrency and DeFi markets, in-depth analysis requires a deep understanding and is heavily dependent on the quantity and transparency of available data. By examining, identifying, understanding, and visualizing data, Atlas hopes to offer more valuable insights. The Atlas Project aims to provide better predictive models for assessing systemic risks, thereby enhancing the security and resilience of the financial system.

Mapping Bitcoin's International Flow

The first step of the Atlas Project is focused on the international flow of crypto assets, particularly Bitcoin.

As part of the initial concept verification, the Atlas Project has identified cross-border flows of crypto assets. This method uses transactions on the Bitcoin network from cryptocurrency exchanges and the locations of these exchanges as the basis for cross-border capital flows.

Preliminary findings indicate that while relatively small compared to the total on-chain network traffic, the confirmed flows between cryptocurrency exchanges are economically significant. By mapping geographical regions to exchanges, the structure of cross-border flows can be outlined. Therefore, the Atlas Project provides a starting point for structural analysis across jurisdictions.

The Atlas Project will provide visual data where users can rotate a globe, click on countries/regions of cryptocurrency exchange traffic, and display inflows and outflows with animated arrows based on the selected country/region, with absolute amounts in USD visible in submenus.