{"id":16221,"date":"2019-08-08T00:00:00","date_gmt":"2019-08-08T00:00:00","guid":{"rendered":"https:\/\/crypto-economy.com\/european-central-bank-seeking-to-create-tools-to-more-effectively-monitor-crypto-assets\/"},"modified":"2019-08-08T00:00:00","modified_gmt":"2019-08-08T00:00:00","slug":"european-central-bank-seeking-to-create-tools-to-more-effectively-monitor-crypto-assets","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/european-central-bank-seeking-to-create-tools-to-more-effectively-monitor-crypto-assets\/","title":{"rendered":"European Central Bank Seeking to Create Tools to More Effectively Monitor Crypto Assets"},"content":{"rendered":"
The European Central Bank<\/strong> (ECB) has released a report<\/a><\/strong> through which it reveals its efforts so far in assessing the crypto economy to find out how it relates to the traditional financial world and how it can influence monetary policy.<\/p>\n \u201cThe ECB has been analyzing the crypto-asset phenomenon with a view to identifying and monitoring potential implications for monetary policy and the risks crypto-assets may pose to the smooth functioning of market infrastructures and payments, as well as for the stability of the financial system.\u201d<\/em><\/p>\n The report titled \u201cUnderstanding the crypto-asset phenomenon, its risks, and measurement issues\u201d<\/strong><\/em> was published on Wednesday.<\/p>\n However, the blockchain presents a unique challenge for the kind of data collection the ECB intends to employ. Data is not readily available and the one that does not effectively account for the fact that blockchain contains both on-chain and off-chain transactions. In addition, the report states that there could be businesses that use layered protocols to carry out transactions which in turn leads to \u201cgaps and challenges\u201d<\/em> for the central bank.<\/p>\n For the services that may have an effect on the monetary policy<\/strong>, the report lists a few such as digital asset derivatives, custody services offered by investment firms and other traditional industry firms venturing into cryptocurrency as well as payments platforms<\/a> <\/strong>seeking to develop solutions based on blockchain technology which could potentially affect the overall financial landscape.<\/p>\n