The Central Bank of South Africa announced plans to apply the blockchain-network Ethereum for servicing interbank operations. The regulator has already completed testing the platform in the framework of Project Khokha.
During the testing it was revealed that the technology of the distributed register allows online processing to process transactions using a simpler scheme than with traditional payment systems. The main advantage of using blockchain is the possibility of an instantaneous cross-border payment. This is especially important for banks involved in international financial operations, is listed in the statement of the regulator’s press center.
In addition to high efficiency, the use of the blockchain Ethereum significantly improves the security of international transactions, which was also proved during testing of platform capabilities. With the help of the Ethereum network, South African banks will be able to process up to 200,000 operations every day, and this number will increase as the productivity of the platform increases.
Almost 99% of all test transactions on the blockchain were processed for less than 2 seconds, and now the regulator set the task to reduce the processing time of operations at least twice. At the same time, the Central Bank of South Africa still refuses to launch its own digital currency, noting the increased risks of digital transactions.