Project Khokha was a large test by the South African Reserve Bank for distributed ledger technology, involving 7 banks. In light of this, SARB states the results were good, and Project Khokha was a great success. But is it time for banking institutions to use blockchain technology?
In June, the South African Reserve Bank stated that for an extensive test of distributed ledger technology, Project Khokha was a great success. However, they do not believe it’s time to migrate interbank transactions onto blockchain technology as of yet.
There are a number of considerations that require further exploration before determining whether DLT systems are suitable for use in wholesale interbank settlements…This is only the starting point
This test included seven banks: Absa, Standard Bank, Capitec, Discovery Bank, FirstRand, Investec and Nedbank. All 7 banks used Quorum, an “enterprise-oriented” version of the Ethereum blockchain.
The South African Reserve Bank deems the project “a proof of concept, designed to stimulate a ‘Real-World’ trial of distributed ledger technology (DLT)-based wholesale payment system”
All 7 banks built their own nodes used to operate on the network. To do this, they used a mix of both cloud-based virtual machines as well as physical ones.
The results show that the typical daily volume of the South African payments system could be processed in less than two hours with full confidentiality of transactions and settlement finality
Claim SARB in their report.
Transactions were processed within two seconds, across a network of geographically distributed nodes, with distributed consensus providing the requisite resilience. The SARB was able to view the detail of all the transactions to allow for regulatory oversight.
All things considered, things are looking good for cryptocurrency in Africa. While these periods of regulation can come with a level of uncertainty, it’s far better than an outright ban on cryptocurrency. What do you think of these new regulations? Let us know in the comments below!
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