South Africa’s central bank is “open” to cryptocurrencies and blockchain, according to new statements from its governor.
In a speech today at a cybersecurity conference held in Johannesburg, governor Lesetja Kganyago indicated that the South African Reserve Bank is exploring the technology and interested in innovations that may stem from its development.
Kganyago, who has served as governor of the central bank since 2014, suggested that the Reserve Bank would look for possible uses that would help the institution "execute our mandate more effectively and efficiently".
Kganyago told attendees:
The remarks suggest a greater degree of interest on the part of the central bank in the technology, coming less than two years after it released a position paper on digital currencies.
At the time, the bank warned local consumers about the perceived risks of using digital currencies from an anti-money laundering and cyberfraud perspective. However, it noted that it "does not oversee, supervise or regulate the VC landscape".
Private institutions in South Africa, on the other hand, have made significant overtures to explore, test and deploy the technology.
Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.