The South African Reserve bank has begun to conduct workability tests on the latest in CBDC technology.
South Africa had experienced a decline in crypto activities since last year with the occurrence of what Chainalysis records as the largest Scam Bitcoin operation of 2020. Many retail traders and Investors had lost interest in cryptocurrencies in South Africa. This, in turn, had resulted in a massive decline in various crypto rankings with market capacity in South Africa. Recent developments have come to aid the recovery of the South African crypto market. It started with the launching of various ETFs and now, a new CBDC.
Major Updates
- SARB kickstarts feasibility study for the newest CBDC till 2022.
- The study will constitute practical experiments over digital platforms.
- Project Khokha had a successful test run back in 2017.
- The coin’s issuance is yet to be decided.
The South African Reserve Bank (SARB) has disclosed they have kicked off a feasibility study for the newest central bank digital currency. The entire procedure will take place from now till 2022.
The Central Bank had announced on May 25 that the study would consist of practical experimentations over several digitally-inclined platforms.
Several factors would be considered during the study, and these include; risk management strategies, regulations, reliability and security, and various policies.
Furthermore, it was explained that the study would be different from the previous one, Project Khokha, which was cited around the settlement of higher valued transactions amongst commercial banks and stakeholders on a more grand scale than the retail crowd.
Meanwhile, the SARB has put down the potential issuance of a digital currency as it is yet to be decided.
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Similarly, Project Khokha was first discussed in 2017 but is yet to be hosted. It was a digital project making use of the Ethereum network to study transactions using blockchain technology. The turnout was a whopping 70,000 successful transactions in under 2hours, a significant spike above expected performances.
Conclusion
It also succeeded in achieving a 95% block propagation time interval in under a second and 99% in under two.
With this success already attained, the issuance of the currency is still considered as the SARB progressively studies the benefits involved.
Question of the Day
Do you think the SARB will potentially issue a CBDC?
Source: Bitcoin.com
