Could blockchain be the answer to stamping out corruption in the public sector?
SA loses billions of rand every year due to corruption in public procurement
As blockchain technology continues to gain prominence in the fintech industry, many industry players believe the technology could be key in the fight against corruption in the public sector. Every year, SA loses billions of rand due to corruption in public procurement. Blockchain, or the distributed ledger system, has given rise to cryptocurrencies such as bitcoin. The system uses independent computers to synchronise transactions online without the need for independent validation. It promotes a secure exchange of value without any need for a central authority, such as a bank, government or financial institution. Conducting public procurement via a blockchain platform may make procurement more efficient, transparent and less likely to result in disputes, according to Prof Sope Williams-Elegbe from the department of mercantile law at Stellenbosch University, who delivered her inaugural lecture at the university in October. The Reserve Bank has also been pushing blockchain technology v...
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