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Writer's pictureCobus van Wyk

Absa, African Bank First to Join Global R3 Blockchain Consortium

Updated: Mar 26

iGamingVision are not the first to identify that the financial services industry has become saturated with disruptive technologies. Banks around the globe feel the pressure to embrace these to ensure they remain relevant and competitive. Blockchain is one of the most notable disruptors, a technology that has the potential to change financial services as profoundly as entertainment and media consumption and delivery methods became severely altered with the advent of the internet.


Graphic art displaying the text R3

Paging through the cryptocurrencies news updates, it is the article on an African banking group being the first on the continent to join blockchain that sparks iGamingVision's interest most. Travelling to South Africa is way more affordable than anticipated, plus visitors could enjoy breath-taking scenes of nature, exotic wildlife, sun-soaked coasts and learn more about the local cultures.

ABSA

It’s with great excitement iGamingVision turns its focus to the African Bank group, it is amongst the front-runners in the finance world to experiment with blockchain. Absa Bank was the first to investigate blockchain on a momentous scale, it forms part of the Barclays Africa Ground. The news release confirms Absa has become the first African bank to join the R3 blockchain global conglomerate. R3 Blockchain is a financial innovation firm partnered with forty-two leading international banks designed to offer global financial markets advanced distributed ledger technologies.


Getting the CIOs to Comment on the Huge Potential Blockchain Brings to South Africa


Absa Bank is set to develop and distribute the first ledger-banking solutions in collaboration with multiple other banks in South Africa. The aim is to build and establish blockchain-based solutions while addressing common financial service needs, and all participating banks will share in the resulting intellectual property.


The CIO at Barclays Africa, Ashley Veasey pointed out that while this enterprise is the first in technology innovation in terms of financial services, it is crucial to unlock the potential value blockchain could bring to trade in Africa.


iGamingVision would also like to share that Andrew Baker, the CIO for Corporate and Investment Banking, revealed Barclays Africa sees huge potential in disruptive technologies such as blockchain for financial institutions in Africa. It can be utilized to improve the lives of all clients while empowering individuals as they work collaboratively to co-develop and share problem solutions, which will be the only way to realise its true value.


In fact, blockchain is still in a maturing stage. It still needs to gain the trust of consumers and financial institutions alike. Once accomplished, widespread adoption will quickly follow. Currently, change focuses on innovations that will become mainstream as regulatory acceptance increases.


Barclays Africa, according to Baker started experimenting with blockchain in 2015 with the Rise initiative, called the Supply Chain Challenge. Bitcoin Africa Conference hosted the challenge which was also co-hosted by Blockchain.


Could Blockchain Revolutionize the Financial System Worldwide?


iGamingVision asked the above question and three key points brough us to the most likely conclusion! Initially, the condensed version arrived from Harvard, “the internet of everything requires a ledger of everything”.


Daily transactions = Quadrillions of Dollars


The financial industry is exploring blockchain by investigating how it could close loopholes and resolve inefficiencies in the current system responsible for processing transactions worth trillions of dollars daily.


Impenetrable Technology


As a safe and secure technology, the financial industry sees blockchain as the technology with the potential to increase security and transparency while remaining a cost-effective solution.


Large Scale Blockchain Experimentation


Financial institutions across insurance, asset management, banks, stock markets, and many other related sectors currently experiment with optimising blockchain solutions, each find significant gains in security, transparency, and efficiency.


Crypto Spenders on the Increase


Cryptocurrencies enjoyed a huge spike in popularity due to recent lockdowns, with transaction increases most visible amongst Litecoin, Bitcoin and Ethereum. The top three networks currently process on average 1.5 million transactions daily.


The daily amount transferred across Litecoin, Ethereum and Bitcoins average around $12 billion. In the past five years transactions increased sixfold, while the average value of each transaction increased fourfold. On average, 40% of the daily sales are made up of new customers while users spend double the value of previous transactions. One of the main reasons is the up to 55% reduction in transaction fees by shifting to crypto. As more and more consumers switch to cryptocurrency spending, cryptocurrency accepting merchants enjoy an ever-increasing flow of business.


Several surveys indicate shortages in crypto-accepting merchants, including online retailers and internet-based casinos. By accepting cryptocurrencies these casinos open their online doors to an untapped audience of new players ready and eager to spend their crypto. The benefits of crypto gambling for players include increased privacy & security, reduced transaction times, and low transaction fees.


In conclusion: iGamingVision found the financial sector, including traditional banks, are embracing blockchain, which transforms everything from how money is raised to how it is spent.


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