Raphael Auer, chief economist at the Bank for International Settlements (BIS), has proposed a new method for supervising fintech and blockchain companies called “built-in controls.”
The meaning of the new method is automatic monitoring of tokenized markets. Now for the supervision of markets and companies, the regulator has to collect and process various reports, various levels of data, and then redirect this data to certain departments and agencies.
“Built-in controls will help ease the conflict between data availability, the cost of collecting, verifying data, and privacy,” Auer said in his report.
For the “built-in control” method, the economist suggests using machine learning and artificial intelligence (AI). Using these technologies, monitoring the financial industry will be more effective, and therefore cheaper.
“If markets using distributed ledger technology continue to evolve, the way assets are traded and how they turn into complex financial products can change. Since the information contained in the blockchain is verified by the consensus algorithm, it can replace the current data collection and verification processes for regulators, ”Rafael Auer explained his point of view.
In June, BIS warned that financial services offered by major corporations such as Facebook, Google and Amazon could create new risks for the banking sector.
Related posts:
GitHub Libra Code draws criticism from users 
Tipping on Reddit and Vimeo in BAT introduced by Brave 
Newcomers to the crypto market have to pay attention to scams and pump and dumps 
Hardly any growth in downloaded crypto apps, despite tripling price bitcoin 
Bloomberg accepts Bitcoin – says cryptomonads are here to stay 
The Central Bank can release their cryptocurrencies earlier than expected
