The Central Bank in South Africa has now launched a program that will adapt and trial the JPMorgan’s Quorum blockchain potential for interbank settlement and clearing.
Besides, JPMorgan’s Quorum blockchain, the South Africa Reserve Bank (SARB) is also partnering with ConsenSys; an ethereum startup in technology that developed the proof-of-concept. The programs will work hand in hand in automating wholesale payments on the JPMorgan’s Quorum for then bank.
The SARB said in a statement, “The aim of this project is to gain a practical understanding of DLTs through the development of a proof of concept (PoC) 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 Central Bank also plans to issue its own digital token to enable interbank PoC just like Singapore’s Central Bank. The Asian interbank settlement system also runs on the Ethereum blockchain.
Blockchain adoption in South African banks is taking shape since February last year when the banking institutions announced that they were exploring ways to incorporate the blockchain technology in their systems. However, SARB has made it clear that this move does not mean that it was integrating DLTs into the country’s national payment infrastructure.