Key Takeaways
- South Africa Central bank warns residents about accepting tainted money from ATMs.
- ATMs looted following civil unrest
- Cryptocurrencies provide a great alternative to cash
Local news outlet EWN revealed in a report that the South African Central Bank had issued a circular about the prevalence of banknotes stained in blue and green ink within some regions.’
Violence erupted in the country following the news of the sentencing of former president Jacob Zuma by a South African court for corruption. It is understood that over 1200 ATMs were looted in the past weeks in different regions across the country. Criminals had free rein, and several buildings and financial centers were looted in the process.
Authorities believe that the total losses incurred in the past week runs into billions of dollars and are on the lookout for suspected criminals. South African Reserve Bank noted that residents that had received or given tainted notes would have to take them to the nearest police station to prevent future prosecution. The report also concluded that it was unknown the total value of tainted notes in circulation.
This development in South Africa is another indication of how blockchain technology can make life easier for authorities. The tainted notes are largely unknown and cannot be traced unless the spenders leave a paper trail highly unlikely in a cash-first economy in South Africa.
Cryptocurrency transactions can be monitored on the blockchain and can be traced between wallets. South Africa is currently testing out a national digital currency and, if properly implemented, will prevent future cases of criminals looting and getting away with stolen money,
Until then, the government is left exposed to criminal elements that can break into cash ATMs and steal money during civil unrest.
Do you think South Africans will return tainted banknotes to authorities?
