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South Africa’s Financial Institution Intake Blockchain After Zupta’s Scam

Feb 17, 2018 Posted /  6864 Views

South Africa’s Financial Institution Intake Blockchain After Zupta’s Scam

On 14th February, the nation’s 4th president, Jacob Zuma resigned from his post due to enforcement by his own party members. Zuma was assigned as president in the year 2009 and served his nation for 9 years. On the same day of resignation, the police officials raided the Gupta Brothers in South Africa – Atul, Rajesh, and Ajay, renowned as wealthiest  Guptas. As per sources, Zuma was involved in a corruption scandal with Gupta Brothers. The scandal has been named as Zupta- and was one of the major reason behind his resignation.

As per cointelegraph reports, the Zupta was making money through planning laundering of money by assigning government contracts to offshore incapable companies. The surplus amount was transferred into Zupta’s account located in various countries such as China, US, India, UAE, and Canada. The scandal came into limelight when multi-jurisdictional corruption investigators noticed suspicious cash flows in these bank accounts

In response to the reported scandal, South Africa’s branch of Bank of Baroda, SBI, and ABSA were ordered to shut down Zupta’s account.

Adoption of Blockchain Technology by South Africa.

Following to Zupta Scandal, the Chairperson of South Africa’s Financial Blockchain Consortium,

Farzam Ehsani announced that the nation’s financial institution is going to opt for Blockchain based technology to acknowledge transparency in the system, called Springblock.  The involved bank, State bank of India also declared that it will be opting for Bankchain’s Blockchain in collaboration with India’s Primechain Technologies.

In an interview with Bloomberg the  Chief Blockchain Architect at Primechain Technologies, Rohas Nagpal said, “Primechain Technologies is a blockchain startup in India. Bankchain is a member-driven — thirty-two banks— the community with no separate legal existence. All member fees are collected by Primechain Technologies to develop blockchain technologies for member banks to lower overhead costs, process transactions more quickly, provide the security of the banking system, use specialized and highly optimized permissioned blockchains to facilitate information sharing among the banking institutions that are members of the network”

With the motive of tracking and analyzing development, the apex bank of South Africa, South Africa Reserve Bank (SARB) has established a Financial Technology Program. The program will assist policymakers in framing and regulating emerging technology. A project named, Khokha will also be launched aiming at exploring Ethereum Blockchain with various inventions.

South Africa has been favoring cryptocurrency and technology behind it from its initial stage. The apex bank of the nation issued a position paper on cryptocurrencies in the year 2014 and initiated a program based on Blockchain in the year 2017 with a technology solution provider, Bankymoon. Till now no rules and regulations have been framed by the government officials regarding Crypto circulation

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Tags: blockchain finance bitcoin Ethereum

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