The South African Reserve Bank (SARB) has recently issued a consultation paper evaluating the advantages and dangers of crypto trading in the country. The article, established together with an amount of the country’s administration activities, was stated in an authorized statement published Jan. 16. Among the growing cryptocurrency scams and false ICO contributions across Africa, the South African Reserve Bank (SARB) gave an evocative ‘report’ concerning many cryptocurrency features inside the country. As per the demand, public to review the policy paper and remark on the same.
In the document, that stated Consultation Paper on Policy Proposals for Crypto Assets South Africa’s government simplifies that at present it does not plan to ban either cryptocurrency trading or cryptocurrency payments.
Currently, the consultation paper is open for public until 15 February 2019 where each one of the members can say their view on all cryptocurrency features labeled in a draft. However, the suggestions are made by the Intergovernmental FinTech Working Group (IFWG) that includes the associate of Treasury and SARB.
“The IFWG and Crypto Assets Regulatory Working Group is of the view that regulatory action should not be delayed until the most appropriate regulatory approach has become clear, but to rather act and amend as innovation evolves.”
By asking public commendation on such paper, SARB plans to have strong accepting of crypto features inside the country. The article reads;
Upon conclusion of the consultation phase, the regulatory authorities will specify the way forward through a policy instrument such as a guidance note or position paper aimed for the first quarter of 2019. As per the SARB’s report on the experimental, called as Project Khokha, all of the bank’s objectives were positively attained, the primary goal is to create a proof-of-concept (PoC) great expense system for interbank payment using a tokenized South African rand on distributed ledger technology (DLT).
The project further meant to examine the unified issues of the policy’s flexibility, liability, privacy, and conclusiveness.The more popular cryptocurrencies are, the more scrutiny and regulation they attract – a common paradox that bedevils the digital note and erodes the primary objective of its existence. Either way, the lack of intermediaries and oversight is making it remarkably attractive to the investors and causing daily commerce to change drastically. Even the International Monetary Fund (IMF) fears that cryptocurrencies will displace central banks and international banking in the near future. After 2030, regular commerce will be dominated by crypto supply chain which will offer less friction and more economic value between technologically adept buyers and sellers.
Francois Groepe, Reserve Bank Deputy Governor, further clarified that:
“We don’t use the term “cryptocurrency” because it doesn’t meet the requirements of money in the economic sense of the stable means of exchange, a unit of measure and a stable unit of value. We prefer to use the word ‘cyber-token.’”