In a virtual address following the release of a the Khokha report 2, Lesetja Kganyago, the governor of the South Africa Reserve Bank (SARB) has urged regulators and policymakers to play a key role as financial technology continues to evolve globally.
According to the Governor, the role of central banks and regulators should ‘evolve with financial markets’ to ensure they stay relevant in future markets just as they are relevant now.
Furthermore, the Governor pointed out that the participation of regulators and policymakers is important given that decentralized financial markets are not able to fulfill certain needs of the public, including:
- Consumer Protection
- Financial Stability
- Stability and Soundness
______________________________________________________________________
SEE ALSO: [WATCH] South Africa Releases Project Khokha 2 Report – Summary and Key Findings
______________________________________________________________________
Accordingly, the Governor, whose central bank has uncovered some insights from testing the application of blockchain technology for interbank settlement in the 2 Khokha projects, stressed that policymakers and regulators can contribute in shaping a potential move to blockchain-based financial markers.
He even gave a few pointers which include:
- Examining the implications of innovation
- Promoting responsible innovation for the public good
- Informing an appropriate policy and regulatory response
Project Khokha 2, which is the second phase of the country’s trials of an interbank settlement system, was launched in February 2021 and involved the creation of two forms of tokenized money to allow for settlement between financial institutions.
The Governor pointed to the the report for Project Khokha 2 as SARB’s contribution to broader discussions surrounding the regulatory treatment of crypto assets and financial market innovation.
Project Khokha 1 examined the use of blockchain for interbank settlements by successfully replicating some functions of the South African real-time gross settlement (RTGS) system on blockchain.
______________________________________________________________________
RECOMMENDED READING: South Africa’s Project Khokha Among 8 Real-World Global Blockchain Case Studies Highlighted by ConsenSys
______________________________________________________________________
Thank you for your support by helping us create content:
BTC address: 3CW75kjLYu7WpELdaqTv722vbobUswVtxT
ERC20 Address: 0x03139524428e40E31f13909f8D994C915FB91277
SOL address: 9cC65AWFHj848kntcoyiT8av3jiRQEqyTTmBR1GvVUb
____________________________________________________________________
Follow us on Twitter for the latest posts and updates
Join and interact with our Telegram community
_____________________
Subscribe to our YouTube channel below for more updates:
_____________________________________________________________
