Central Banking, a global central banking forum, has bestowed its FinTech & RegTech Award for Best Distributed Ledger Initiative to South Africa’s central bank for its successful Project Khokha, which successfully used an Ethereum blockchain platform to process interbank payments and settlements.
The test demonstrated that distributed ledger technology (DLT) can enable digital as opposed to analog transaction processing, offering significant improvements for global transactions. Central Banking noted on its website that the test’s success demonstrates the need for regulators to address banks’ security and privacy concerns to improve global transaction processing.
The South African Reserve Bank designed and executed Project Khokha in under three months to test the proficiency, resilience, confidentiality, finality and scalability of a DLT solution for processing transactions under realistic conditions on a wholesale payment system. The bank used JP Morgan Chase’s Quorum network with Istanbul Byzantine fault tolerance and Pedersen commitments and range proofs.