SOUTH AFRICAN CENTRAL BANK SUCCESSFULLY TESTS PAYMENT SYSTEM USING BLOCK CHAIN TECHNOLOGY

JOHANNESBURG–The South African Reserve Bank (SARB) says it has successfully tested its payment system using block chain technology.

The results of the tests are part of the central bank’s Project Khokha which assessed the emergence of technological innovations in the financial sector. The report of the study was launched here Tuesday.

SARB Deputy Governor Francois Groepe says block chain payment and settlement system is safe and efficient.

Independent computers will also be used to process payment as a back-up measure.

The Bank runs the retail gross settlement system for the country and we process the transactions of about 150 trillion Rand (about 11.8 trillion US dollars) a year, so that’s nearly 30 times the GDP …. and what we did is a proof of concept to see if we can use the technology to settle in a gross settlement system set-up, Groepe said.

He added that the central bank had managed to settle about 70,000 transactions in about 90 minutes and 99 per cent of those transactions were settled in two seconds.

Let’s assume the central bank main system is down ….. that causes huge disruptions, people won’t be able to use their credit card or do EFT (electronic funds transfer); what the system allows is that even if the central bank (main system) is down, the system can operate without disruption, said Groepe.

Tests conducted on the system showed that Project Khoka was able to process the typical daily transaction volume of South African financial institutions within two hours.

Project Khoka was designed to show how a ‘real-world’ distributed ledger technology (DLT)-based wholesale payment system functions. Its focus was based on providing participants with practical experience on how to use DLT within a realistic environment.

Source: NAM NEWS NETWORK