A digital rand in South Africa could cut the high cost of cross-border payments for banks, says Juben Naidoo, deputy governor at the South African Reserve Bank.
A digital rand in South Africa could cut the high cost of cross-border payments for banks, says Juben Naidoo, deputy governor at the South African Reserve Bank ., Naidoo said that the introduction of a digital rand is at least a few years away, but he hopes the regulation of crypto assets in South Africa will be in place within the next 15 months, to help prevent theft, money laundering, and the undermining of monetary policy.
Many countries have plans to use digital versions of traditional currency, known as central bank digital currencies , to make sending money between central banks across the globe more accessible and affordable., South Africa remains the most costly G20 country to send payments from. Remitting from the country costs an extra 13.02%. The report stated that sending from Japan, the second most expensive G20 country, was only 7.52% in Q4 2021.
Absa, FirstRand, Investec, the JSE, Nedbank and Standard Bank are all part of Project Khokha 2, testing blockchain technology to speed up payment systems in the country. Naidoo pointed out that South Africa has conducted a small cross-border pilot experiment with other countries, namely: Malaysia, Australia and Singapore.Other countries are also planning to introduce e-versions of traditional currency, said Naidoo.
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