Central Bank of South Africa will start Bitcoin regulation test

A provider of solutions based on the chain of blocks in South Africa known as Bankymoon, has been selected by the central bank of that country to carry out the Bitcoin regulatory pilot tests.

The Reserve Bank of South Africa is, in essence, the central bank of the country. This institution will begin to test with different types of regulation for Bitcoin and other cryptocurrencies, in order to understand its boom and legitimize its use in the country.

So far, the government of South Africa had turned a blind eye to digital currencies, but with this measure, has taken an important step in a flourishing market, where users and traders have been enthusiastic about the application of new technologies financial

Lorien Gamaroff, CEO of Bankymoon, has admitted that talks with the central bank have barely begun. In this regard, he said that they are evaluating the extent to which the relationship will develop, since the central bank has not shown an emphatic position with respect to any situation that has arisen around cryptocurrencies.

For the moment, the regulation will focus on Bitcoin, with the expectation of being widely applied to the other cryptocurrencies.

Regulation or freedom

Gamaroff has defined himself as a guarantor of Bitcoin's innovation, and thinks that regulations, instead of being harmful, will give the network a greater level of legitimacy within local economies and increase people's confidence in them. this technology.

For example, Michael Jordaan, former CEO of First National Bank (FNB), and one of the most important men in the financial world of South Africa, has shown himself to be an advocate of cryptocurrencies, claiming that these assets will soon displace central banks. He has also expressed that the entire banking system could collapse, if the use of Bitcoin is legally approved, thanks to its low rates.