A global central banking forum has awarded its FinTech and RegTech award for Best Distributed Ledger Initiative to South Africa’s central bank for the project Khokha.
The successful project Khokha used Ethereum blockchain platform in order to process interbank payments. The distributed ledger technology testing showed that it can enable digital as opposed to analog transaction processing thus making serious improvements for transactions worldwide. This test showed that regulators need to address banks’ security and privacy issues in order to improve the entire transaction process.
Project Khokha was designed in less than three months and it showed resilience, proficiency and tested the scalability of a DLT solution for processing transactions under conditions that exist in real life on the entire payment system. The goal of the project is to successfully process transactions and at the same time following the principles for Financial Market Infrastructures. The project also established goals for transaction time, security and privacy. The biggest goal is to make scaling possible from 70,000 to 200,000 daily transactions.
South Africa’s central bank established a goal of about 96% of transactions validated in less than a second and almost 99% of transactions validated in two seconds. The important thing to know is that only the central bank could retain visibility of all the transactions that were done but all other participating banks could not view each other’s transactions. The project provided complete transactional privacy and the central bank maintained regulatory oversight of all the transactions that were processed under two seconds.
It’s important for regulators to work together in order to protect the entire financial system but also at the same time to be careful not to suppress innovation.
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‘’The virtual currency relies on the use of a distributed database between the central banks and the participating banks from both sides. It seeks to safeguard customer interests, set technology standards and assess cybersecurity risks. The project will also determine the impact of a central currency on monetary policies.’’The financial institutions in the countries have thoroughly studied the blockchain technology and are hoping to have great benefits. Back in December 2018, UAE’s Securities and Commodities Authority recognized ICOs as securities and they also announced to be working on a regulatory framework for 2019. UAE’s Emirates Islamic Bank also tested the blockchain and even started submitting cheques on a blockchain named ‘’Cheque Chain’’ and since it has proven to be successful, the bank registered one million cheques in 2018 in only a month.
UN Thinks Bitcoin & Crypto Are “The New Frontiers” In Finance, Focusing On Ripple And IOTa
“Cryptocurrencies represent a new frontier in digital finance and their popularity is growing. The decentralized networks for cryptocurrencies, bitcoin being a well-known example, can keep track of digital transactions. They enable value to be exchanged and can give rise to new business models which would otherwise require significant regulatory and institutional commitments." the report states.According to the UN, blockchain and crypto have many use cases. As it is explained in the document:
"For example, a value token called ClimateCoin is being considered as a basis for creating a global market for carbon emissions, allowing peer-to-peer exchange of carbon credits and a direct connection with the Internet of Things. It would then be possible for devices to calculate their own carbon emissions and purchase carbon credits to offset those emissions."The document also focuses on innovation and how it comes from inherent trust, citing that "the innovativeness of this system lies in the way in which the various parts combine to create the trust and guarantees that the traditional financial system derives from institutions and regulation."
“Bitcoin Is The Only Blockchain That May Exist For The Next 100 Years” : Alistair Milne
“The probability that Bitcoin matches its ATH [all-time high] price again and doesn't then continue past it seems very low. Each wave of adoption is an order of magnitude bigger than the last,” Milne wrote in the Twitter thread that he started on Saturday.Meanwhile, Bitcoin suffered another drop which took it below $3,500, giving less optimism to traders hoping for a new bull run. The new downturn has led to many accusations from high-profile economics figures. However, Milne continued expressing his optimism and said:
“The next bull run will decide which public blockchains persist for the next 100 years. I believe Bitcoin is currently the *only* sure thing[.]”Aside from this, Milne also highlighted the interest by institutional investors and labeled Bitcoin's profile as the "gold 2.0" in the next round of adoption.
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