"The Hidden Agenda of the BIS: Control and Conspiracy in the Global Financial System"
The Bank for International Settlements (BIS) presents its Innovation Hub as a platform to "develop public goods in the technology space geared towards improving the functioning of the global financial system."
Bank for International Settlements
However, some critics argue that the BIS's true intentions may be more aligned with consolidating control over financial technologies and reinforcing central banks' dominance in the evolving digital economy. For instance, the BIS Innovation Hub's focus on central bank digital currencies (CBDCs) and monitoring stablecoins could be interpreted as efforts to suppress decentralized financial innovations that operate outside traditional central banking frameworks. This perspective is supported by the BIS's emphasis on projects like 'Project Pyxtrial,' which aims to develop a platform for systemic monitoring of stablecoins, potentially indicating a desire to regulate or limit the growth of private digital currencies.
Furthermore, the BIS's collaboration with central banks to develop CBDCs may be seen as an attempt to preempt the adoption of cryptocurrencies and other decentralized financial instruments that challenge the conventional banking system. By positioning itself at the forefront of technological innovation in finance, the BIS could be seeking to ensure that any advancements in this space remain under the purview of central authorities, thereby maintaining the status quo and limiting the disruptive potential of truly decentralized financial technologies. This approach raises questions about whether the BIS's initiatives genuinely aim to foster innovation for the broader benefit of the financial system or primarily serve to entrench existing power structures within the global financial hierarchy.
For a visual overview of the BIS Innovation Hub's projects, you may find the following video informative:
The Journey of the BIS Innovation Hub
Cecilia Skingsley, the head of the BIS Innovation Hub, reflected on the journey of the organization since its inception in 2019. She described the early years as resembling a startup, marked by rapid expansion, the establishment of centers, and a sense of urgency to address the evolving needs of the central banking community. “Five years down the road, we now have a little more than 100 members of staff working across seven centers,” she noted. The hub has published findings from over 30 projects and currently has around 24 projects in progress, covering areas such as central bank digital currencies, green finance, and cybersecurity.
Skingsley emphasized the hub’s mandate to foster international collaboration and innovation, noting that their work focuses on identifying critical trends and providing insights to the central banking community. She expressed gratitude for the recognition and support received from central banks worldwide, adding, “We have gathered and distributed a lot of knowledge about what novel technology can do for central banks and the financial system at large.” She highlighted that, going forward, the hub aims to integrate findings from different projects to deliver more comprehensive tools and solutions.
Financial Integrity and Project Highlights
One of the core focus areas for the hub is financial integrity, a challenging domain that requires balancing inclusivity, efficiency, and security. Skingsley explained, “We want to improve financial inclusion in the world… make services quicker in delivery, cheaper, easier to use… but at the same time, the public sector and society need to combat financial crimes.” To address these issues, the hub is working on projects such as Mandela, HEA, Aurora, and Raven.
Mandela focuses on automating compliance procedures for cross-border financial transactions, while HEA aims to detect financial crimes while maintaining privacy. Aurora employs innovative methods to combat money laundering through a networked view of payments data, and Raven uses AI to assess the cybersecurity readiness of financial systems. Skingsley expressed optimism about these projects, stating, “There’s a lot of potential here to provide central banks with tools that will have a meaningful impact on the work they’re already doing.”
Advancing Monetary Policy with Technology
The BIS Innovation Hub is also exploring how technology can enhance monetary policy, central to the role of central banks. Skingsley acknowledged the central banks’ history of adopting advanced technologies for macroeconomic analysis and forecasting. She highlighted Project NeO, which aims to use machine learning and predictive modeling to analyze new data sources, such as transport and retail data, in real-time. “We think these unique datasets, combined with traditional economic indicators like GDP and inflation, can give central banks a more detailed picture of the economy right here and right now,” she said.
Another critical area is crypto assets, where the hub is working on initiatives like Project Atlas and Project Pyxtrial. Atlas has developed a proof of concept to track global crypto asset flows, while Pyxtrial focuses on monitoring the assets underlying stablecoins to ensure their stability. These projects aim to provide central banks and regulators with tools to enhance visibility and safeguard the financial system.
New Projects and Future Directions
Looking ahead, Skingsley announced two new projects focusing on artificial intelligence. Project Gaia seeks to enhance green finance by extracting insights from unstructured data, while the AI Supervisor Enhancer (ISA) aims to support financial supervisors by automating tasks like document evaluation and background checks. These projects reflect the hub’s ongoing commitment to addressing the increasing complexity of financial supervision.
Skingsley also emphasized the importance of collaboration in implementing solutions developed by the hub. For example, Project Nexus, which connects fast payment systems across countries, and Project mBridge, which facilitates cross-border payments using alternative technologies, are now being handed over to central banks for further development. “We exist to serve as a focal point for collaboration and innovation across central banks,” she concluded.
Final Reflections
The Bank for International Settlements (BIS) presents its Innovation Hub as a driver of technological advancements in the financial sector. However, some critics argue that its true intentions may be more aligned with consolidating control over global financial systems. For instance, the BIS's involvement in projects like mBridge, which focuses on cross-border central bank digital currencies (CBDCs), raises concerns about the potential for increased surveillance and centralized oversight of financial transactions. Additionally, the BIS's history during World War II, where it was accused of conducting operations beneficial to the Nazis, further fuels skepticism about its current initiatives.
In the interview with Cecilia Skingsley, the BIS emphasizes its role in identifying critical trends in financial technology and developing public goods in the technological space. However, the organization's past actions and current projects suggest a pattern of seeking greater influence over the global financial infrastructure. The establishment of the Innovation Hub and its various projects could be interpreted as steps toward creating a more centralized and controlled financial system, potentially at the expense of individual privacy and financial sovereignty.
In conclusion, while the BIS publicly promotes its Innovation Hub as a means to foster technological progress in the financial sector, historical precedents and current initiatives suggest a potential agenda aimed at consolidating control over global financial systems. The organization's involvement in projects like mBridge and its controversial history during World War II raise questions about its true intentions. Critics argue that these efforts may be part of a broader strategy to centralize financial oversight, potentially undermining individual privacy and financial autonomy. As such, it is crucial to scrutinize the BIS's activities and consider the implications of its initiatives on the future of the global financial landscape.