⚠️ HRF CBDC ⛓️🪙 alert from HRF for South Africa (21-FEB-2024)

🗝️ℹ️ (Key Information)

CBDC Status: Pilot

CBDC Launch: n/a

CBDC Model: n/a

CBDC Issued: n/a

Inflation Rate: 7.04%

One-Sentence Summary:

"South Africa advances in CBDC developments amid corruption concerns flagged by the Human Rights Foundation."

✅🇿🇦 is a key participant in developing two central bank digital currency (CBDC) prototypes and has moved to the pilot phase.

✅ Working with 🇦🇺, 🇲🇾 and 🇸🇬, the South African Reserve Bank collaborated on Project Dunbar geared towards improving cross-border transactions.

✅ Challenges faced in Project Dunbar involve questions of governance, access, and regulatory boundaries.

✅ Another CBDC prototype, Project Khokha, focused on tokenization and interbank settlement.

✅ Reserve Bank governor Lesetja Kganyago underlines that decentralization may not guarantee public policy objectives.

✅ The Reserve Bank is also exploring retail CBDCs for the general public, with a focus on improved regulation and combating financial crimes.

✅ Deputy governor Kuben Naidoo highlights potential economic destabilization if cryptocurrencies become widespread without regulation.

✅ Despite a fairly high Freedom rating, 🇿🇦 faces corruption issues, raising concerns of potential misuse of CBDCs.

✅ Corrupt practices may jeopardize promises to limit surveillance, control, and other risks associated with CBDCs.

#SouthAfrica #CBDC #HumanRights #FinancialStability #CentralBank

Question:

Considering South Africa's current situation, do you believe the development of CBDCs will contribute positively or negatively to its economic and human rights landscape? How can CBDCs be safeguarded against misuse in countries grappling with corruption issues?

Disclaimer: This is an AI-generated summary of the original text from HRF, forigve fuck-ups plox. If you find it useful, ⚡ the Tracker Bot because the AI and Cloud bits are not free to run.

Source of data: https://cbdctracker.hrf.org/home (npub1zhqcda52mrvcc0vkwegwsp5xtpk6l6x5kqx85f06tu9lw5h6xx0scch0dw)

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