The South African Reserve Bank, in an official announcement, has released information on a new initiative that will include “Project Khokha” in partnership with the Ethereum coder collective known as ConsenSys.
The announcement also includes confirmation that the SARB will look into its position on private cryptocurrencies, regulation thereof as well as “Innovation facilitators” which they define as: “a collective term for innovation hubs, regulatory sandboxes, and accelerators.”
This announcement contradicts the Reserve Banks’ deputy governor, who previously stated that the issuance of a blockchain enabled central cryptocurrency would be “too risky” in August 2017.
The SARB has also stated officially that they would look into, and plan on issuing their own interbank token to use for local settlements. This is similar to the concept which the Singaporean government has been working on, which was heavily borrowed from the Bank of Canada’s own project.
The SARB has maintained that this proof of concept study will not necessarily result in them pivoting to using blockchain technology in any mainstream aspect, rather that it is being done to better understand the implications of using such a system.
A public report will be released to citizens and stakeholders in Q2 2018.
Do you think that more central banks should be conducting these types of projects and do you think more of them will be doing so in the future?
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Tiaan Wolmarans is a cryptocurrency investor and trader, airplane pilot, musician, and writer.
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