Absa, FirstRand, Investec, the Johannesburg Stock Exchange (JSE Limited), Nedbank, Standard Bank and Strate. have been selected among the entities that will be trialling Project Khokha 2, a proof-of-concept project which aims to explore the use of digital currency, blockchain and tokenised money in SA.
In a statement, the Intergovernmental Fintech Working Group (IFWG) announced the launch of Project Khokha 2, the second phase of a project designed to simulate a “real-world” trial of a distributed ledger technology (DLT)-based payments system.
The project will produce a public report highlighting the insights gained on a number of policy and regulatory challenges introduced by such innovation. This is in line with the IFWG’s objectives to promote responsible innovation and provide regulatory clarity on financial technology (fintech) innovation in support of its members’ mandates, including stable and resilient financial markets.
According to IFWG, Project Khokha 2 is a continuation of the structured analysis of the impact of DLT on financial markets, both the benefits and the risks, by gaining practical experience through experimental trials with industry. “The project should not be seen to reflect support for any particular technology or as a radical policy shift. However, it is the project’s objective to assist in the formulation of appropriate fintech-related policy frameworks through the publication of a thought leadership report,” IFWG notes.
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Related article: Launch of the Intergovernmental Fintech Working Group (IFWG) Innovation Hub
