South Africa`s Central Bank: It`s Risky to Launch a Cryptocurrency

South Africa`s Central Bank: It`s Risky to Launch a Cryptocurrency

A senior official for South Africa`s central bank has reportedly said that it`s “too risky” for the bank to launch its own digital currency.

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A senior official for South Africa`s central bank has reportedly said that it`s “too risky” for the bank to launch its own digital currency.

The deputy governor of the South African Reserve Bank, Francois Groepe, spoke at the Strate GIBS FinTech Innovation Conference 2017 that took place in Johannesburg on August 22, 2017.

“We are witnessing the disruption of financial services. Over the past decade or so, fintech`s attention and publicity has continued to intensify and increase. It is continuing to usher in completely new ways of banking. Developments in the fintech space are part of evolutionary process driven by innovations.”, as he said as quoted by a local media.

He added that regulators need to be prepared to approach the developments in the financial technology space. For example, he mentioned some of the possible ways to deal with the situation:

“These are developing analysis on activities involved in the financial services: continuous collaboration between local and global regulatory authorities; and investigating and deciding on the most appropriate structures in order to keep abreast of fintech developments.”, as he told ITWeb.

At the same time, it was reported earlier that the South Africa`s central bank is “open” to cryptocurrencies and blockchain, as coindesk.com wrote in an article.

“As a central bank, we are open to innovations despite the different opinions of regulators on matters such as cryptocurrencies. We are willing to consider the merits and risks of blockchain technology and other distributed ledgers.”, said governor Lesetja Kganyago who spoke at a cybersecurity conference held in Johannesburg as quoted by the online media.

According to coindesk.com, domestic banks have been testing the use of ethereum blockchain, while local crowdfunding platforms like Usizo reportedly announced projects that facilitae energy payments between donors and selected schools in the country.

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