BIS and New York Fed Pilot Tokenized Monetary Policy Smart Contract Project Pine

Foresight News reports that the Bank for International Settlements and the Federal Reserve Bank of New York are piloting smart contracts for tokenized monetary policy, exploring how central banks can continue to implement monetary policy operations in a tokenized wholesale financial market. This study, named Project Pine, tested a prototype "universal customizable monetary policy tokenization toolkit" for further research by central banks. The Bank for International Settlements stated, "The smart contract toolkit is fast and flexible. In hypothetical scenarios, central banks can immediately add and modify tools." The report emphasizes that if tokenization is widely applied to money and securities, smart contracts will play a central role in the execution of monetary policy.