Home>News>Economy>Cryptocurrency>South Africa Reserve Bank Commences Retail CBDC Feasibility Study

South Africa Reserve Bank Commences Retail CBDC Feasibility Study

Cryptocurrency
27.05.2021
217
South Africa Reserve Bank Commences Retail CBDC Feasibility Study

The South African Reserve Bank (SARB) says it has commenced a feasibility study for a general-purpose retail central bank digital currency (CBDC). The study, which the SARB expects to conclude in 2022, will focus on the issuance of a domestic CBDC that can be used by consumers in South Africa for general retail purposes.

Study to Focus on Retail CBDC

In a statement released on May 25, 2021, the central bank says the feasibility study will include practical experimentation across different emerging technology platforms. The study will take into account a variety of factors, including policy, regulatory, security, and risk management implications.

Still, the statement clarifies that this latest study will be distinct from the previous one. The statement explains:

It should be noted that while the CBDC feasibility study is different from Project Khokha, which focuses on the settlement of high-value transactions between commercial banks and other stakeholders at the wholesale level, it is expected that the two studies will result in better policy alignment and coordination.

However, the SARB has downplayed the possibility of it launching digital currency in the near future. It said it has “made no decision to issue a retail CBDC.”

CBDCs and the SARB’s Mandate

In 2017, the SARB created a simulation (Project Khokha) to assess if the performance, scale, and confidentiality of payments were possible utilizing the Ethereum blockchain technology. This simulation reportedly “exceeded the transaction performance target at 70,000 transactions in less than two hours.”

Additionally, the simulation achieved a “95% block propagation time in less than 1 second and 99% propagation in less than 2 seconds.” The results demonstrated that “acceptable performance is achievable, despite the geographical distribution of the banks’ hardware.” Concerning its latest feasibility study, SARB says this will also consider how the issuance of a general-purpose CBDC will feed into the central bank’s policy position and mandate.

What are your thoughts on the SARB’s latest feasibility study into CBDCs? You can share your views in the comments section below.

Author:bitcoin

Актуальные новости

24.09.2021, 15:41
353
‘Rudy is really hurt’: Giuliani reportedly banned from Fox News
31.08.2021, 13:38
349
Man Fakes Own Kidnapping and Runs Off with USD 1.15M in Clients’ Bitcoin
30.03.2022, 12:03
189
11 companies form Canadian Web3 Council to advocate for comprehensive crypto strategy
21.05.2022, 15:00
181
Ethereum Has Destroyed $8.10 Billion in Ether, ETH Scarcity to Increase After The Merge
19.05.2022, 08:30
247
Crypto Exchange Coinbase Slows Hiring Amid Market Downturn
08.09.2021, 17:30
299
Meet the First BCH Dex Built on Smartbch — Benswap.cash Presents High-Yield Liquidity Pools, Noncustodial Swaps
16.07.2021, 03:38
231
New Zealand farmers stage huge protest over environmental rules
07.10.2021, 05:30
322
New UN envoy to Yemen urged to broaden talks to end civil war
btc
$ 27847
-0.49%
eth
$ 1764.22
-0.31%
xrp
$ 0.487643
+3.8%
busd
$ 0.999295
-0.16%
ltc
$ 92.33
+0.12%