A collaboration between the Federal Reserve Bank of New York (NYFed) and the Bank for International Settlements (BIS) has explored the potential of smart contracts in monetary policy. Their research initiative, titled ‘Project Pine,’ investigates how central banks can function within tokenized financial systems. The project simulates market turmoil through a toolkit that evaluates interoperability, data standards, and operational risks associated with these technologies. 10 historical market scenarios were tested to assess the feasibility and efficacy of implementing smart contracts in monetary policy. This initiative aims to create more efficient and adaptable policy tools for central banks navigating the evolving landscape of digital assets.