Quorum Blockchain From JP Morgan Explored By South African Reserve Bank

Blockchain, FinTech, News | February 15, 2018 By:

The South African Reserve Bank (SARB) is launching a Financial Technology Program to assess the emergence of FinTech in a structured and organized manner, and to consider its regulatory implications.

The main objective of the program is to trial distributed ledger technology (DLT). It plans to launch “Project Khokha” to attempt to replicate interbank transfers on Quorum, an ethereum blockchain platform built by JP Morgan.

The bank has partnered with blockchain firm ConsenSy to assist in designing and facilitating the proof of concept. The SRAB said the project may eventually lead to future blockchain integrations, which can build on the knowledge gleaned from this pilot to become more efficient and secure.

Other objectives of the project include a review of the central bank’s position on cryptocurrencies and investigate and decide on the applicability of innovation facilitators for the SARB. Through collaboration with the other regulatory bodies, matters such as tax implications, consumer and investor protection, and money laundering activities will also be addressed.

The SARB said the project will help them in the formulation of policy frameworks for the possible regulation of FinTech. It added that they will release a public report to explain all the findings, risks, and benefits of the project during the second quarter of 2018.