Tokenized Fiat Interbank Imbursement System Is Being Piloted By South Africa’s Central Bank
The Central bank of South Africa has effectively piloted a Proof-of-Concept (PoC) an imbursement system that involves all the banks and tokenizes fiat utilizing Quorum. This is according to the bank’s press release which was made public on June 5th, 2018. It ought to be noted that Quorum is a private blockchain which is based on Ethereum.
According to the bank’s report, it had been successful in achieving its goals in the project christened ‘Project Khokha’, where the main objective was to establish a proof-of-concept across-the-board imbursement processes for interbank settlements. These settlements were to be done by use of a tokenized S.A rand on (DLT) distributed ledger technology.
Examining The Interconnected Issues
Additionally, the project’s objective was also to examine the ‘interconnected’ concerns of the platform’s scalability, conclusiveness, flexibility and discretion. ConsenSys, a blockchain incubator was the technical partner in the project which involved seven banks in South Africa. The global assessment and accounting firm Pricewaterhouse Coopers Inc. (PwC) also took part in the project as a shore up associate.
South Africa’s central bank is tasked with coordinating the nation’s existing Real Time Gross Settlement System (SAMOS). SAMOS works round the clock throughout the year, to straighten out all interbank obligations on an instantaneous basis in central-bank money.
The piloting of Project Khokha is actually dis-intermediated; this basically means that every bank is solely in charge of constructing its own node on the system. In this way, even the minting of tokens will be done by every bank on a blockchain, instead of printing fiat to reconcile the asset responsibilities of the bank.
A representative from ConsenSys was quoted by TrustNodes asserting that commitments as well as range proofs are methods that hold balances in an unsystematic numerical arrangement. In this way, the balance of every member is hidden. The South African Central Bank would possess a decrypting key with the objective of monitoring the liquidity of the banks. It will also play the role of regulatory oversight.
Reports from the central bank also indicate that the methods are quick, meaning that the pilot system managed to successfully process SAMOS’s high-value payments transaction volumes all over the distributed sites within the requisite timeframe. According to reports from the Central bank of South Africa, the system is likely to have significant implications in the nation’s banking system.