Central Banks Test ‘Instant’ Monetary Policy Changes Using Blockchain

Central banks are accelerating their exploration of blockchain technology by testing a prototype tool that could allow them to implement monetary policy changes instantaneously in tokenized financial environments, according to a report released Wednesday by the Bank for International Settlements (BIS) and the Federal Reserve Bank of New York. The BIS and New York Fed’s research project, known as ‘Project Pine,’ successfully demonstrated rapid response capabilities, allowing policy changes to be implemented within minutes.