The ECB is studying a system for monitoring cryptocurrencies and blockchains

The ECB (European Central Bank) has just published a report in which it has hypothesized a monitoring system of cryptocurrencies through the analysis on blockchain data. A few days ago even the American SEC made a very similar decision on monitoring digital currency data. The decisions of these regulators of finance makes it clear how traditional institutions feel the need as well as the usefulness of creating distributed public registers on which all can conduct the right transactions analysis. 

The report written by the ECB takes the title of "Understanding the phenomenon of crypto assets, the risks and problems of measurement", was created by Andrea Pinna, Maria Teresa Chimienti and Urszula Koschanska, and has the aim of understanding better what can be the potential risks of cryptocurrencies and above all how to improve their monitoring. 

Understanding crypto-assets and their characteristics are necessary, for this reason it is necessary establish a clear definition also for the activities dedicated to their monitoring on the open registers. In fact, the ECB report highlights how the data measured in the cryptocurrency sector must then be available to the public through a blockchain. 

The ECB also stated that is analyzing the phenomenon of cryptocurrency assets to be able to identify how these can have implications for monetary policy and the stability of the financial system, to be able to identify the risks that can be incurred while using these digital currencies. 

Monitoring of the data is not satisfactory at the moment, the ECB has in fact declared to use aggregate data from third parties at the time and present on various public websites. However, the various sources present data that is different from one another, are not complete, and access to raw information is often not allowed. 

The gaps are probably the same that led the SEC to equip themselves with new and personal tools to carry out the direct analysis of blockchains, a decision that most likely could also be taken by the ECB. 

The ability to monitor more adequately these data could lead to better efficiency and stability of the economy and financial system.