A New Era in Banking: Standard Bank Joins the Hedera Governing Council
Standard Bank Group, Africa’s largest bank by assets, has decided to shake things up in the banking world by partnering with Hedera Hashgraph, an enterprise-grade distributed ledger technology project. This collaboration isn’t just about flashy technology; it’s a strategic move to enhance cross-border trade across the continent, making it smoother than your favorite peanut butter.
Setting the Stage for DLT in Africa
Joining the Hedera Governing Council puts Standard Bank in lofty company alongside powerhouses like Google, LG, and IBM. But the real kicker? They will become the first Hedera node operator in Africa. This means they are going to flex their DLT muscles to tackle bottlenecks that plague cross-border commerce in Africa.
Innovation vs. Reality: The Payment Dilemma
African countries have seen a sugar rush of innovations in domestic payment systems with faster and more efficient transaction processes. Yet, when it comes to cross-border payments, it’s like trying to run a marathon with a flat tire. Stablecoins are being eyed as potential remedies to fix this payment dilemma, and Standard Bank is eager to jump onto that bandwagon.
Harnessing Technology to Transform Trade
According to Ian Putter, head of DLT and blockchain at Standard Bank, this partnership is crucial for leveraging decentralized technology to improve trade practices. In his words, DLT is the golden child that can transform how trade works in Africa. “We have completed proofs of concept, have solutions in production, and are partnering to scale and exploit these solutions,” said Putter, illustrating the commitment to innovation.
Looking Ahead: The Future of Digital Currencies
With the buzz around central bank digital currencies (CBDCs), there’s a growing recognition of the disruptive potential of DLT technology in global business processes. Mance Harmon, CEO of Hedera, sees Africa as a key player in this technological evolution, especially with services like M-Pesa paving the way for a broader acceptance of blockchain and distributed ledger technologies.
Beyond Banking: DLT Applications in Various Sectors
The interest in DLT doesn’t stop at financial services — it’s spreading into healthcare, energy management, identity verification, and supply chains. African companies are gearing up to embrace this technology, proving that the adoption of new innovations is not just a phase but a future-focused movement.
