Reserve Bank of South Africa Launches Feasibility Study for Retail CBDC

The Reserve Bank of South Africa (SARB) said it has started a feasibility study for a general retail central bank digital currency (CBDC). The study, which SARB plans to complete in 2022, will focus on issuing a local CBDC that can be used by consumers in South Africa for general retail purposes. The CBDC Retail Focused Study said in a statement dated May 25, 2021 that the central bank feasibility study will include hands-on experiences across a variety of emerging technology platforms. It takes into account a variety of factors, including research, policy, regulatory, security, and risk management practices. Still, the statement makes it clear that this latest study will be different from the previous one. The statement explains: While the CBDC feasibility study differs from the Khokha project, which focused on resolving high-value transactions between commercial banks and other stakeholders at the wholesale level, both studies are expected to be successful. better alignment and coordination of policies. However, the SARB has reduced the possibility of launching digital currencies in the near future. He said he did not decide to issue a retail CBDC. Authority of CBDCs and SARB In 2017, SARB created a simulation (Project Khokha) to assess whether the performance, scale and privacy of payments are possible using Ethereum blockchain technology. This simulation could "exceed the transaction performance target with 70,000 transactions in less than two hours." In addition, the simulation provided "95% blocking time of less than 1 second and 99% spread in less than 2 seconds". The results showed that "acceptable performance can be achieved despite the geographic distribution of the bank equipment". Regarding the latest feasibility study, the SARB says it will also consider how to mine a General Purpose CBDC.

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