Regulators and banks are currently testing a digital currency system in South Africa

The Intergovernmental Fintech Working Group (IFWG) has announced the launch of ‘Project Khokha 2’ – a project to investigate the use of token money, blockchains and digital currency in South Africa.

This comes after the first of the group Project Khokha Test examining the use of blockchain technology to speed up payment systems in the country.

As part of the Khokha 2 project, the IFWG has announced that it will continue to investigate the use of Distributed Ledger Technology (DLT) in the country’s financial sector.

Distributed Ledger Technology (DLT) is a digital database system for recording the transaction of assets, in which the transactions and their details are recorded simultaneously in multiple locations.

DLTs are currently most closely related to blockchains – the system that underlies cryptocurrencies like Bitcoin. However, blockchain technology is just one way of using DLTs.

As part of the project, the group announced that it will also work with a number of new technologies, including token money and a digital currency that is wholesaled by the central bank.

You can read a more detailed technical breakdown of the project Here. Participants who will join the IFWG in the Khokha 2 project include:

  • Absa;
  • FirstRand;
  • Investec;
  • The Johannesburg Stock Exchange (JSE Limited);
  • Nedbank;
  • Standard bank;
  • Strate.

Members of the IFWG are the Competition Commission, the Financial Intelligence Center, the Financial Sector Conduct Authority, the National Credit Regulator, the National Treasury, the South African Revenue Service and the South African Reserve Bank.

Read: This is the new minimum wage for South Africa

Comments are closed.