Reserve Bank Set Up Cryptocurrency Team
Around the world governments and unions have had to deal with the birth of cryptocurrency and try to analyse how they will try deal with things like Ethereum, Bitcoin and BunnyCoin (a cryptocurrency for the “adult” industry).
Recently, the South African Reserve Bank (SARB) decided to set up a team to study and advise on cryptocurrency and Financial Technology (Fin Tech). They are expected to eventually advise in formulating an official policy on cryptocurrency.
Cryptocurrencies pride themselves on being untraceable and hiding the details of transactions and is built on blockchain technology. Around the world, the debate continues as to whether cryptocurrencies are money or rather a commodity.
“Betamaxed”- to become obsolete in the face of alternative technology
Due to the rapid changes in technology, it would be a constant challenge for regulatory legislation to keep pace with developments. You could quickly end up with the situation where after much debate and legislative effort you could have new laws passed about Myspace and Mixit, years after the market has evolved and moved on.
The SARB have asked the National Credit Regulator (NCR) and Competition Commission to join the IFWG (Intergovernmental Fintech Working Group) along with National Treasury, the FSB and Financial Intelligence Centre as they consider how Fintech and cryptocurrency will fall under the Twin Peaks model.