South Africa's Reserve Bank wins award for its Ethereum blockchain project

09 Sep, 2018
by David Robb
South Africa's Reserve Bank wins award for its Ethereum blockchain project

A major global banking award has been given to South Africa's Reserve Bank, for a system that makes use of the Ethereum network. Project Khoka processes interbank payments using the blockchain. 

Project Khoka received the FinTech & RegTech Award for Best Distributed Ledger Initiative, from global banking forum Central Bank. It was first launched by the Reserve Bank of South Africa to assess performance, scalability, privacy, resilience and finality of a blockchain solution, under conditions that were as realistic as possible.

Based on JP Morgan's Quorum network, which is an offshoot of the Ethereum blockchain, the entire solution was designed, built and delivered in less than three months.

Read more: JPMorgan seeks patent for blockchain payment system

Each bank on the network was in charge of setting up its own node, and payments were processed using a digital token of South Africa's fiat currency, the rand, backed by central bank deposits. Project Khoka was capable of scaling up from 70,000 transactions per day to 200,000.

Announcing the award, Central Bank pointed out how important it is for regulators "to work together to safeguard the financial system without stifling innovation", lamenting how slow this process has been up to now.

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