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Bitcoin a no-go for Standard Bank

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 13 Feb 2014
Standard Bank, one of SA's big four banks, has completed an internal Bitcoin pilot project, but says it has no plans to launch.
Standard Bank, one of SA's big four banks, has completed an internal Bitcoin pilot project, but says it has no plans to launch.

Standard Bank, one of SA's big four banks, has completed an internal Bitcoin pilot project, but says it has no plans to launch.

The group says the trial was in line with its "ongoing focus to offer customers innovative financial solutions" and was embarked upon "several" months ago.

The pilot formed part of Standard Bank's research into activities around Internet-based financial services and solution offerings with the objective to assess Bitcoin, its systems, offerings, challenges and risks.

It was instituted exclusively within the bank, and participation was limited to eight selected members of staff. No customers participated in the pilot.

"Standard Bank runs such pilots to constantly improve the way it does banking in order to remain relevant to its customers and cater for their ever-changing needs," it says.

Bitcoin, an alternative to physical currency, launched in January 2009 and was created by Satoshi Nakamoto, although there are doubts as to whether this is his real name.

The virtual currency allows users to send payments within a decentralised, peer-to-peer network without the need for a clearing house. However, unlike banks, Bitcoin third-party accounts are not regulated.

The supply of Bitcoins cannot exceed 21 million and, currently, there are more than 12.4 million units in circulation, according to Bitcoincharts, a Web site that tracks activity across exchanges.

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