Digital currency feasibility study launched by South African Reserve Bank

rpm

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Digital currency study launched by South African Reserve Bank

The South African Reserve Bank (SARB) has launched a feasibility study into the introduction of a central bank digital currency (CBDC) as “digital cash”.

SARB said the CBDC would be a form of electronic legal tender aimed at providing “the best attributes of both cash and electronic payments”.
 

RaptorSA

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When printing money gets too tedious and you'd rather create it using a WHILE loop

EDIT:
Here you go SARB, you don't need that R50 Million tender, I did the code for you.

WHILE 1 = 1
BEGIN
v_inflation += PrintCash('R200')

IF v_inflation >= 785.55%
GOTO SwitchCurrency

END

SwitchCurrency:
ZIM.switchcurrency('ZAR','USD')
GOTO BegginBowl

BegginBowl:
ZIM.BegTheWest('Please colonizer sir, may I have some more')
 
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Ockie

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How would this be different to us using our debit/credit cards as we do now? Is our Rands which we have in the bank not just a electronic currency anyway until we withdraw it cash at the ATM? I dont really see the point of this? And is this related to SARB looking at doing a local competitor card to VISA and MasterCard?
 

HavocXphere

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How would this be different to us using our debit/credit cards as we do now?
It's basically just app/QR based payments.

Literally nothing new/special about it...

...except for government. Emphasis on central. If you can design the system from the ground up to be digital & centrally controlled you can track people better than a system that is a mix of cheques, cash, cards, ETFs, SWIFTs etc.

It's a privacy nightmare. Kinda like wechat is. Except nobody will recognize it as such cause all the governments doing this are riding off crypto craze...even though central gov currency is literally the opposite. Unfortunately media is helping...look at this article...giant bitcoin picture with words decentralized written on it....on an article about a central bank thing.

One of the reasons I'm hoping crypto really takes off because f the above.
 

Little Mac

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How would this be different to us using our debit/credit cards as we do now? Is our Rands which we have in the bank not just a electronic currency anyway until we withdraw it cash at the ATM? I dont really see the point of this? And is this related to SARB looking at doing a local competitor card to VISA and MasterCard?
Transparency, trustless, immutable... so much good... and so much bad.
It's great for a time when trust and transparency are bigger issues. We're getting there.
 

Little Mac

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It's basically just app/QR based payments.

Literally nothing new/special about it...

...except for government. Emphasis on central. If you can design the system from the ground up to be digital & centrally controlled you can track people better than a system that is a mix of cheques, cash, cards, ETFs, SWIFTs etc.

It's a privacy nightmare. Kinda like wechat is. Except nobody will recognize it as such cause all the governments doing this are riding off crypto craze...even though central gov currency is literally the opposite. Unfortunately media is helping...look at this article...giant bitcoin picture with words decentralized written on it....on an article about a central bank thing.

One of the reasons I'm hoping crypto really takes off because f the above.
It's actually decentralized - at least the original intention. Nobody controls it, everybody "owns" it.
 

Napalm2880

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...except for government. Emphasis on central. If you can design the system from the ground up to be digital & centrally controlled you can track people better than a system that is a mix of cheques, cash, cards, ETFs, SWIFTs etc.
There are very good reasons for governments to track financial movements both within and outside of the country.

There are unfortunately also some very bad reasons as well.
 

quovadis

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How would this be different to us using our debit/credit cards as we do now? Is our Rands which we have in the bank not just a electronic currency anyway until we withdraw it cash at the ATM? I dont really see the point of this? And is this related to SARB looking at doing a local competitor card to VISA and MasterCard?
We haven't got enough problems so we need to add additional electricity demand for mining this stuff /s
 

Napalm2880

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We haven't got enough problems so we need to add additional electricity demand for mining this stuff /s
Close.

I've heard rumours about this project for 2yrs now and the real question is: who is going to profit from mining this blockchain?
 

ab-user

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It's actually decentralized - at least the original intention. Nobody controls it, everybody "owns" it.
Will gov will have a central master key and be able to switch off / forfeit "digital cash" as they please?
/looks for tin foil hat
 

quax

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I don't think they will be looking at a dencentralised model, or relying on private nodes to process. I am pretty sure that this would be centralised by SARB and the registered Financial Institutes. The SARB is one of the reasons our k** currency still holds some value. I for one like the fact that they are exploring possibilities with technology. Although this article does not give much info, we will see if there is any benefits to this.
 

Mystic Twilight

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How would this be different to us using our debit/credit cards as we do now? Is our Rands which we have in the bank not just a electronic currency anyway until we withdraw it cash at the ATM? I dont really see the point of this? And is this related to SARB looking at doing a local competitor card to VISA and MasterCard?

It's going to be a lot easier to nationalise your funds.


Close.

I've heard rumours about this project for 2yrs now and the real question is: who is going to profit from mining this blockchain?

Who said anything about public mining, your wallet is probably going to be held in a central location like all those online wallets like coin base and luno, the sarb will be doing the "mining" to verify your transactions.
 

Praemon

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There's a number of benefits with a digital currency, but perhaps the biggest is that it should - in theory - make it far cheaper and easier to accept payments. Instead of a retailer having to pay card fees to companies like VISA and MasterCard, it could be processed all "locally" without needing international payment processors. That means more money for retailers who could in turn give those savings to consumers. The other side is speed. It should mean someone can pay you immediately without worrying about inter-bank transfer times, and that could apply to international transfers when other countries have digital currencies.

Privacy is obviously a concern, but if you use the banking system your transactions are already "trackable" anyways, and it's going to take decades to phase out physical cash. Digital currencies are definitely the future, but they need to find the right balance between privacy and accountability.
 

Napalm2880

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Seems that they have a new study, every couple of months ...
It's important that the regulators of our financial system keep up to date. In a lot of respects we're ahead of most countries.

That said, I think they're focusing on the wrong things. The most pressing issues that SARB / PASA need to solve in this country (in my opinion) are:

1. Payments between unbanked individuals (ie. no bank account) at a cost <50c per transaction.
2. Open Banking APIs.

This will make it easier for the masses to transact and the second point will open the doors for fintechs and create thousands of jobs.
 

markings

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This is an intelligent discussion of the thoughts behind and implications of China's digital currency. It is an up-to-date (2 days ago), stunning and exciting revelation of its potential and broader social use from a knowledgable person living in China.
 

Surv0

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We already use digital currencies? Literally when I use my cards, or use Paypal or any of the other payment apps and NFC stuff... are people trying to find ways to create money out of nothing and hope people use it as a trading tool?
 

markings

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We already use digital currencies? Literally when I use my cards, or use Paypal or any of the other payment apps and NFC stuff... are people trying to find ways to create money out of nothing and hope people use it as a trading tool?
The video explains that these methods are account based. That means third parties and the internet are involved.
The digital RMB is issued by the Chinese reserve bank, there is no crypto mining
The brief for the Chinese RMB included
1 It must be usable like cash, i.e. for buying small items like a sweet
2 It must have some degree of anonymity
3 It must also work if there is no internet connection like rural areas
Money can be transferred from phone to phone directly, or a phone or ATM to a digital RMB card, at no or very low cost. People who have no smartphone are therefore included in this cashless world.
Digital RMB cards should be available to tourists at the Olympics 2022. I think many people will stand around with open mouths and realize why China will win the economic war, or any other one for that matter. They are 10, if not more years ahead of almost any country in the West.
 
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