According to a report by Cointelegraph, research from the New York Fed's Innovation Center and the Bank for International Settlements (BIS) Swiss Center shows that smart contracts can provide central banks with flexible tools in a tokenized financial system. The report released by the BIS on May 15 stated that Project Pine tested a 'universal customizable monetary policy tokenization toolkit.'
The report pointed out that if tokenization is widely applied to currency and securities, smart contracts will play a central role in the execution of monetary policy. The BIS emphasized that smart contract technology can help central banks respond quickly to emergencies and crises, but existing infrastructure faces challenges. Project Pine utilized the Ethereum ERC-20 token standard.
