The South African Reserve Bank (SARB)
recently unveiled the findings of study which reinforces the growing view that the
blockchain technology improves the performance and efficiency of an entire
banking ecosystem.

In consortium with seven leading South African commercial banks, the SARB partnered with ConsenSys Solutions to build a proof-of-concept grounded in real-world performance, confidentiality requirements, and diverse bank hardware on the blockchain without a single point of failure.

The conclusions drawn from this study dubbed Project Khokha, fit well with a pattern observed with studies elsewhere. Central banks need to embrace this technology if they wish to become more efficient and stay relevant.

It appears the SARB is now satisfied that it can increase the resilience of interbank payment systems while maintaining or reducing the overall cost of those systems through use of the blockchain. That was the main thrust of the study.

SARB, through Project Khokha, sought to replicate interbank clearing and settlements by deploying a ‘permissioned’ blockchain network.

According to SARB, this exercise was made to assess whether the blockchain technology could significantly improve the performance, scale, and confidentiality of payments in a real world simulation.

SARB about-face?

SARB’s endorsement of the study findings seemingly runs counter to its previous stance on this technology as outlined in a 2019 consultation paper. SARB asserted then that crypto-assets— or cryptocurrencies as they are widely known—were an innovation that could materially impact on financial services provision in that country. The so-called crypto-assets are underpinned by the same blockchain

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Posted from my blog with SteemPress : https://africablockchainmedia.com/news/project-khokha-touts-benefits-of-the-blockchain-to-south-africa-banking-industry/2020/02/03/

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