Central Banks of South Africa and Indonesia to Issue CBDC

The Reserve Bank of South Africa and the Central Bank of Indonesia have begun exploring the possibility of launching their own CBDC for retail payments.

May 26, 2021, | AtoZ Markets –  The South African Reserve Bank (SARB) has announced that it has begun to study the technical potential of state-owned digital rand and their economic viability in general.

Central Bank of South Africa will study CBDC

According to the press release, the regulator will focus on how the possible launch of central bank's digital currency (CBDC) will affect the country's economy and its development strategy as a whole.  The initiative will include hands-on experiments involving multiple technology platforms.

The Central Bank of South Africa will conduct research on the state stablecoin until 2022, along with the Khokha pilot project launched in June 2018. Khokha is an interbank payment system using the private Quorum blockchain. At the same time, the Central Bank noted that current research does not mean readiness to launch its own CBDC in the future.

Read also: South African Regulator Warns of the Crypto Assets Investment Risks

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Indonesia to issue national digital currency

Meanwhile, the Governor of the Central Bank of Indonesia Vardzhiyo Perry declared its readiness to issue a national digital currency (CBDC) to speed up transactions.

The Central Bank of Indonesia is assessing which technology is best suited to create a digital rupiah that will become a legalized payment instrument alongside regular money.

During the pandemic in Indonesia, the number of online transactions increased.

Read also: Indonesia Is Considering the Taxation of Cryptocurrency Trading

Therefore, after the appearance of the digital rupee, the population of Indonesia should not have any difficulties with the transition to the state cryptocurrency. However, the Central Bank does not yet have an exact timetable for its launch.

Note that in terms of the development of state cryptocurrencies, China is ahead of many countries.

Earlier, AtoZ Markets reported that the People's Bank of China (PBoC) has already tested the digital yuan several times in different cities and is now approaching its official launch.

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