The European Central Bank (ECB) has released a new report stating that the organization plans to use more in-network data to better monitor cryptocurrencies.

According to the report” Understanding the Phenomenon of Crypto Assets, its risks and measurement Problems”, the ECB has already created a system that uses” high-quality ” aggregated data available online. Thus, the organization is trying to analyze the “phenomenon of crypto assets” to determine and track how financial technology can affect monetary policy, as well as to assess the risks that it can pose to market infrastructure, payments and financial stability.

However, using the available data in this way implies certain restrictions. The report explains that this data leaves “gaps”, such as possible risks for financial institutions that carry crypto assets and payment services that use multi-level protocols.

The document also mentions the risks that derivatives, means of investing in digital assets, as well as payment cryptocurrency platforms carry. These risks may have certain consequences for financial policy and stability. Despite the fact that such situations are currently “contained or managed”, when it comes to regulated financial firms, they “can develop and grow over time”. The report says:

“It is difficult to obtain publicly available data on the segments of the crypto asset market if they remain out of the field of view of government agencies. Some relatively illiquid trading platforms may be affected by trading and there is no consistency in the methodology and agreements used by institutionalized exchanges and commercial data providers. Moreover, new and unexpected data needs may well arise with the further development of crypto assets and related innovations.”

In the future, the ECB plans to delve into the details of the analysis of crypto assets and ” continue working on indicators and data, dealing with complex and growing problems that arise when analyzing intra-network transactions and multi-level protocols.” The organization will also look for new data sources to obtain information about the links between crypto assets and regulated firms.

As for off-network transactions, the ECB said that it will work to increase the” availability and transparency ” of data and the methods used to aggregate them, as well as to “harmonize and enrich metadata and develop best practices for understanding crypto assets.”

In July, the ECB said that it does not consider bitcoin as a reserve currency. In addition, ECB board member Benoit Coeure noted that regulators in various countries need to prepare for the invasion of companies such as Facebook in the financial sphere