Latest news from the Bank for International Settlements: unveiled prototype for monitoring Bitcoin payments

Crypto news: the Bank for International Settlements recently created a prototype system to monitor Bitcoin transactions.

Moreover, money transfers across the border using Bitcoin have a greater impact than public information reflects, according to Reuters. 

See below for all the details. 

Bitcoin: latest news from the Bank for International Settlements on monitoring of cash flow

As anticipated, a new study by the Bank for International Settlements (BIS) has brought to light Bitcoin’s actual influence on cross-border transactions, revealing that its impact may be even more significant than previously imagined.

According to a Reuters report, these findings challenge conventional assumptions and highlight Bitcoin’s growing role in the global financial environment.

Conducted within the organisation’s test lab, this study sought to examine in depth the function of Bitcoin in international transactions. 

Hence, while public information often offers only a limited view of crypto transactions, this investigation took a new approach, including the creation of a new ‘Bitcoin global mapping system‘. 

Specifically, this system reportedly also incorporates non-public data from private companies. 

However, specific details on how the proprietary system works were not provided in the report, but it was acknowledged that the data could be flawed, considering the possibility of using Bitcoin anonymously and without identification.

The system monitored transactions, addresses and wallet movements to paint a more complete picture of international payment transactions with Bitcoin, the report states.

Bitcoin: a promising option for cross-border remittances

Furthermore, the study revealed that Bitcoin is becoming increasingly popular for remittances, providing a valuable alternative for people living in regions with limited access to traditional banking services. 

Not surprisingly, its borderless nature and ease of use have made it an attractive choice for sending funds across international borders.

The results of this study should promote further discussions among regulators, financial institutions and policymakers regarding the role of cryptocurrencies in international transactions.

Recall that the BIS, founded in 1930 and owned by the central banks of member countries, has as its main objective to promote international monetary and financial cooperation.

Consequently, this report demonstrates a continued interest in Bitcoin among central banks around the world, some of which may wish to see a more stringent regulatory approach to this technology.

nBTC: the token revolutionising crypto interconnections

More news: the nBTC token is set to make a marked difference in over fifty connected app chains within the Cosmos IBC ecosystem.

At the forefront of this exciting move is Osmosis, known as the largest decentralised exchange (DEX) in the Cosmos network. Through an innovative collaboration with Nomic and Kujira, Osmosis is determined to bring Bitcoin into the realm of the inter-blockchain communication protocol (IBC).

Users can now transfer Bitcoin on the Cosmos network via Osmosis’ Nomic bridge for a transaction fee of 1m5% of the value transferred, receiving in return Nomic Bitcoin (nBTC), an IBC token issued by Nomic Chain on a one-to-one basis. 

nBTC can be used for buying, selling and liquidity transactions on Osmosis, marking a turning point in the cryptocurrency world. Sunny Aggarwal, co-founder of Osmosis, commented on the news stating: 

“Bitcoin desperately needs an application in the DeFi ecosystem, and Cosmos requires a fundamental monetary asset that can serve as its primary store of value. Nomic is ready to make this long-awaited collaboration for a Bitcoin-centric Cosmo a reality.”

The Interchain nBTC upgrade is scheduled for 27 October, with activation scheduled for 30 October. Additionally, in partnership with the decentralised financial protocol Kujira, users can send their BTC to Kujira’s Sonar wallet address and maintain self-custody of their nBTC. 

nBTC also acts as collateral for Kujira’s native stablecoin, USK, and facilitates lending and borrowing within the ecosystem. Users can participate in auctions for liquidated nBTC collateral.

During the early stages of nBTC’s launch, there will be a strict limit of 21 BTC for the cross-chain bridge. Once this limit is reached, applications will no longer be able to generate deposit addresses and users will not be able to deposit additional BTC.

Control over this parameter will be transferred to Nomic DAO governance as part of a forthcoming update, as stated by the developers.