Fun

South African Central Bank Governor: Regulators and Policymakers Must Be Involved in Shaping Potential Move to DLT Markets

News Feed - 2022-04-09 06:04:23

South African Central Bank Governor: Regulators and Policymakers Must Be Involved in Shaping Potential Move to DLT Markets


The head of the South African central bank has insisted that regulators and policymakers should be involved in directing any potential move to markets that are based on distributed ledger technology (DLT). Pondering the Implications of Innovation


The governor of the South African Reserve Bank (SARB), Lesetja Kganyago, has argued that central banks, regulators, and policymakers should and must play a role in “shaping a potential move to DLT-based markets.”


According to Kganyago, these stakeholders can achieve this objective by “pondering the implications of innovation, promoting responsible innovation for the public good.” In addition, they can also do this by “informing an appropriate policy and regulatory response.”


In his virtual address following the launch of the Project Khokha 2 (PK 2) report, Kganyago shared his views concerning the future of central banks in a world that is based on the principles of decentralization. He said: From a regulatory perspective, I think it is unlikely that decentralised markets will be suitable in all instances or that decentralisation will guarantee the achievement of public policy objectives such as consumer protection, financial stability as well as safety and soundness, which fall within the mandates of central banks and regulators.


The governor nonetheless concludes in his address that the role of central banks and regulators should “evolve with financial markets” to ensure they stay relevant in future markets just as they are relevant now.


Experiment No Indication of Support


Meanwhile, Kganyago revealed that during the second phase of the project, PK2 had explored the implications of “tokenisation in financial markets through a proof-of-concept (POC) that issued, cleared and settled SARB debentures using distributed ledger technology (DLT).” PK2 also examined “how settlement in central bank money and commercial bank money can happen on DLT.”


The SARB governor clarified in remarks that the PK2 experiment did “not signal support for any particular technology” or a change in policy direction.


According to Kganyago, in the initial experiment, dubbed PK1, the central bank and its partners had explored “the use of DLT for interbank settlements by successfully replicating some functions of the South African real-time gross settlement (RTGS) system on DLT.” Tags in this story distributed ledger technology (DLT), Financial Markets, financial stability, Lesetja Kganyago, Project Khokha, South African Reserve Bank (SARB), tokenisation, tokenization


What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. EU Designates ESMA as Crypto Regulator of the Region in Latest MiCA Draft REGULATION | 12 hours ago India"s Digital Currency to Take "Very Calibrated, Graduated" Approach, Says RBI Deputy Governor REGULATION | 20 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSky Mavis Raises $150 Million in Financing Round Led by Binance to Refund Users Affected by the Ronin Bridge Exploit Next articleEU Designates ESMA as Crypto Regulator of the Region in Latest MiCA Draft Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItKenya Central Bank Governor: Low Smartphone Penetration Working Against Plan to Launch CBDC


According to Patrick Njoroge, the governor of the Kenyan central bank, the significant number of non-smartphones that are in use in Kenya means launching a central bank digital currency (CBDC) now may be premature and could lead to many citizens ... read more.US Senator Cruz Introduces Bill to Prevent Federal Reserve From Using Digital Currency as Surveillance Tool Indian Government Consulting With IMF, World Bank on Crypto Policy Bandai Namco Announces Gundam Themed Metaverse With Over 90% of BTC"s Supply Issued, Bitcoin"s Mining Difficulty Reaches a Lifetime High

News Feed

Bitcoin’s Rising Correlation With Gold Indicates Investors See It as a Safe-Haven, Says Bank of America Market Strategists
Bitcoin’s Rising Correlation With Gold Indicates Investors See It as a Safe-Haven, Says Bank of America Market Strategists Amid the economic uncertainty affecting a myriad of cou
‘Metaverse’ Term Creator Neal Stephenson Not Bullish About Massive Adoption of Virtual Worlds
"Metaverse" Term Creator Neal Stephenson Not Bullish About Massive Adoption of Virtual Worlds Neal Stephenson, ostensibly the first to coin the term “metaverse,” issued
LABS Enters the NFT Market – The Real Estate Market Game Changer
LABS Enters the NFT Market - The Real Estate Market Game Changer sponsored LABS Group, the first end-to-end crowdfunding service in the blockchain and real estate
Amaka Nwaokocha10 hours agoEuropean Commission aims for universal acceptance with digital euro proposalWith this move, the European Commission aims to open up the payments market controlled by banks, Visa and Mastercard.
Mythical Games Raises $150 Million in Series C Funding Round Led by A16z
Mythical Games Raises $150 Million in Series C Funding Round Led by A16z Mythical Games, a blockchain-based gaming company, has raised $150 million in its series C funding round. T
Bitcoin.com Adorns it’s Crypto-Friendly Casino with New Games from NetEnt
Bitcoin.com Adorns it’s Crypto-Friendly Casino with New Games from NetEnt Hot new games from two of the top providers added to Bitcoin.com’s very own crypto casino!
Bitcoin Support Sits At $90,6K Short-Term Holder Realized Price – Expert Reveals Key Resistance Level
Este artículo también está disponible en español. Bitcoin has been struggling to reclaim the $100K mark, facing intense volatility and selling pressure since the weekend.
EverRise Brings Buyback Token and Ecosystem of dApps to Polygon and Ethereum
EverRise Brings Buyback Token and Ecosystem of dApps to Polygon and Ethereum press release PRESS RELEASE. Singapore, September 30, 2021. Less than three weeks after releasing its fi
Nigeria denies report of $10B Binance fine
Amaka Nwaokocha1 hour agoNigeria denies report of $10B Binance fineBayo Onanuga, an adviser to the Nigerian president, said no decision had been made about a fine on the crypto exchange.421 Total views2 Total sharesListe
Tom Mitchelhill8 hours agoCFTC investigators conclude ex-Celsius CEO Mashinsky broke US rules: ReportIf a majority of CFTC commissioners agree with the conclusion, the regulator could file a case in federal court.2637 To
India’s Central Bank Governor Warns Crypto Market May Crash and Small Investors Will Lose Money
India"s Central Bank Governor Warns Crypto Market May Crash and Small Investors Will Lose Money RBI Governor Shaktikanta Das has warned that the crypto market may crash and small i
Buda Exchange Starts Requesting Selfie Verification for Withdrawals to New Bitcoin Addresses
Buda Exchange Starts Requesting Selfie Verification for Withdrawals to New Bitcoin Addresses Buda, a Chile-based cryptocurrency exchange, has started requesting