Fri, May 20, 2022

FinTech CEO: SARB Must Look Harder At Regulatory Environment Surrounding CBDC

This week, South Africa completed its proof-of-concept, Project Khokha 2, for its looming Digital Rand, which included a decentralised trading platform, in conjunction with a separate platform to manage the CBDC. Additionally, a project included a bidirectional bridge. It was noted that Project Khokha has successfully replicated SAMOS.

“This is the culmination of over a year of work, and all those involved should be proud of the progress made. That said, South Africa remains a country which must continue to focus on the regulatory component surrounding digital assets of all kinds,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“The project assumes cost reductions, given the ability to streamline infrastructures onto a single platform. That makes sense, but there is further investigation necessary surrounding risk, especially in the current climate with a cyberwar raging in Eastern Europe,” noted Gardner.

“No matter how good the technology is, it won’t be useful unless it is both completely secure and regulated in a way which encourages adoption,” Gardner noted. “Right now, as long as Russia and Ukraine continue to battle, there will be enhanced cybersecurity risks, and they will probably remain even long after the physical fight is over,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies.

Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“The Reserve Bank noted that it would continue studying the elements at play, and that it will consider the legal status of a CBDC. That legal framework will be critical to the eventual success, or failure, of the CBDC. As will the ability to properly educate the populace and get them on board,” noted Gardner

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