It has been reported that the South African Reserve Bank has selected blockchain solutions provider Bankymoon to conduct regulatory sandbox trials. Bankymoon CEO Lorien Gamaroff disclosed the development at a Norton Rose Fulbright blockchain and bitcoin event on Wednesday, July 19.
"All we are doing at this point is seeing how far this relationship will go on within this sandbox," said Gamaroff. "This is because the Reserve Bank is very hesitant to give a stamp of approval on anything that comes out. The sandbox will only be Bitcoin-focused during this initial phase, but is focused on applying broad regulations to all cryptocurrencies."
Gamaroff has conducted workshops and seminars about the potential for cryptocurrency in the South African market. In addition, he was recently brought in to help explore alternative currencies for the nation. Gamaroff seems to think governmental involvement will aid mainstream adoption of cryptocurrency.
"I think the regulation will move things along and make people on the street comfortable with Bitcoin. With these new regulations, these everyday people can now trust that Bitcoin is not just for hackers and criminals."
South Africa's private sector has certainly signaled its faith in cryptocurrency. Just last month, former CEO of First National Bank Michael Jordaan professed his belief that cryptocurrencies will compete with national currencies as soon as 2025.
While the expected sandbox focuses on bitcoin, the South African Reserve Bank previously tested an executable distributed code contract on an Ethereum-based blockchain.
As this story develops, ETHNews will provide updates.