Denis Opudo
South African Reserve Bank (SARB) has launched a fintech program that will aim at exploring proof-of-concept (PoC) via modern technology.
The move is in line with South Africa’s central bank current mission. The bank focuses on establishing a strategy that will test the potential of JPMorgan’s Quorum blockchain settlement and clearing via interbank. Furthermore, SARB emphasized that the effort does not result to complete integration of DLTs national payment infrastructure. Nevertheless, the PoC is a pilot study determining the impact of DLTs application and transaction of tokenized assets in general.
According to SARB report dated 13, February, the bank has declared partnership with Ethereum technology development startup to implement PoC agenda. In addition, the imitative will look at Quorum wholesale payment process, Ethereum startup EthLab, and JPMorgan blockchain.
The SARB further noted that the project aims to obtain a good understanding of DLTs via improving PoC. However, core objective PoC is a replication of interbank settlement and clearing especially on DLT. The strategy will, therefore, allows bank industry and SARB to collectively find out the risks and benefits of DLTs. The programme is one of the current South Africa Financial bodies tasked to explore the operation of blockchain technology. The previous year February report showed that most commercial banks in South Africa are working towards implementation of large-scale blockchain agenda.
The South Africa Central bank during the interview promised to restructure regulatory framework surrounding cryptocurrencies. The approach will handle issues related to tax compliance, capital exchange control, settlement of risks and anti-money laundering
