THE SOUTH AFRICAN RESERVE BANK ANNOUNCES THE SUCCESS OF PROJECT KHOKHA


The central bank of South Africa has announced the success of Project Khokha which is a test project of the blockchain technology Quorum.

Earlier this year, the South African Reserve Bank(SARB) confirmed the launch of a blockchain proof-of-concept(PoC) endeavor via a partnership with Ethereum coder collective consenSys called Project Khokha. In a statement by the central bank:

“The aim of this project is to gain a practical understanding of the distributed ledger technology (DLT) through the development of a proof of concept in collaboration with the banking industry. The objective of the PoC is to replicate interbank clearing and settlement on a DLT which will allow the SARB and industry to jointly assess the potential benefits and risks of DLTs ”

The South African Reserve Bank ran a large test of distributed ledger technology involving seven banks. Each bank built their own nodes on the networks, using a mix of physical and cloud-based virtual machines. The SARB was able to view the details of the all transactions to allow for regulatory oversight. According to the central bank:

“The results show that the typical daily volume of the South African payments system could be processed in less than two hours with full confidentiality transactions and settlement finality”

The SARB insists that the success of the Quorum test does not imply immediate adoption of blockchain as the core technology powering the nation’s payment infrastructure as there are a number of considerations to be made before further exploration.