The South African Reserve Bank released a detailed report on November 27 stating there is no immediate demand for a retail central bank digital currency (CBDC) in South Africa.
Instead, the main priorities include advancing payment technology and expanding access to the country’s payment networks for organizations outside banks.
The document explained that introducing a retail CBDC could be technically possible and might meet certain policy objectives, but at this stage is not considered essential.
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Ongoing projects, such as the Payment Ecosystem Modernisation Programme, were described as the current focus.
The report signaled that the Reserve Bank intends to keep monitoring international CBDC developments and will remain prepared if future circumstances make CBDC adoption more relevant.
At the same time, future research will examine wholesale CBDC models and how digital currency could improve cross-border payments.
There was also an analysis of how retail CBDC could address payment challenges in the country. According to the paper, such a digital option would only see widespread use if it offered offline features, was simple and easy for anyone to use, delivered privacy benefits, and kept transaction fees low.
The Reserve Bank also raised concerns over cryptocurrencies and stablecoins in the local market. The report warned that these assets could pose risks, especially because they may allow users to avoid current regulations on money moving in and out of South Africa.
Recently, South Korea’s efforts to establish official rules for won-based stablecoins were delayed. What happened? Read the full story.
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