South Africa looks into introducing Digital Rand
Lesetja Kganyago and SARB are experimenting with digital currency and distributed-ledger technology. He says it cannot be done in isolation from the wider financial industry.
On the 6th of April Kganyago released a report about project Khokha 2. Its aim was to look into the potential of using blockchain technology for high-value wholesale transactions between commercial banks and other institutions.
“We recognise that digital currency innovation cannot be explored in isolation. The SARB continues to draw on the insights emerging from various initiatives, including (but not limited to) our ongoing study into the feasibility, desirability and appropriateness of a retail central bank digital currency (CBDC), to enrich our understanding of digital currency implications.”
He added that the Reserve Bank’s experimentation during Project Khokha 2, saw the central bank develop two forms of tokenised money to allow for settlement:
- The first form of money was a tokenised form of central bank money which was a liability of the central bank issued onto a specific DLT owned and operated by the SARB in the PoC. This form of money was used to purchase SARB debentures in the primary market
- The second form of money was issued by commercial banks as a stable coin and used for purchasing SARB debentures in the secondary market.
“The insights gained through practical exploration should lead to greater regulatory clarity – both for innovators and for regulators – and should be in the broader interest of ensuring a level playing field for all market participants, Kganyago said.
It sounds dreamy but how realistic can it be?
News broke that South Africans are in for a treat, free data for all by the government as part of their roll-out plan under the umbrella programme SA Connect. This programme is not for selected South Africans but for all of us, from the rural families who still don’t have access to clean water for families in more affluent societies.
The plan is set to look something like this:
In the space of the next three years, the SA Connect project will make its debut. Starting on 1 April this year, 10GB per month is on the cards for all South Africans. The rollout will churn until April 2023/2024 as per BusinessTech.
Additionally, high-speed broadband is also promised to be accessible in every community. Private company partnerships are also set to be in the works to make this possible.
“Funding has been requested from the National Treasury to establish the Broadband Fund with the objective to subsidise household connectivity and public Wi-Fi hotspots in low-income households and rural communities nationally,” the department stated.
The end goal of this programme is that by 2050 all South African households will get 50GB accessible every month, said Minister of Public works Patricia De Lille.
We are in for a treat!!
Offer a Helping Hand
We are bringing awareness to the tragic situation that has happened in KZN. This month they experienced floods that ruined a lot of people’s homes and belongings. If you have anything at all to donate, there are various charities that are at the scene helping those who were affected.
Many South Africans have expressed the spirit of Ubuntu by doing what they can to help.
Trevor Noah said, “we are stronger together”.
