• South Africa’s digital currency study is still ongoing, according to the Central Bank Governor

  • Lesetja Kganyago, the governor of the South African Reserve Bank (SARB), has acknowledged that the central bank is currently investigating the feasibility of launching a digital currency. Governor Kganyago stated at the SARB’s annual general meeting that his organization is conducting this research to stay up with the growing trend of central banks examining CBDCs.

    CBDC for sale in stores

    Several central banks, including a couple in Africa, have announced CBDC research in the last several years. Ghana’s and Nigeria’s central banks have already announced that their respective digital currencies will be piloted in the second half of 2021.

    However, as Kganyago explains in a recent Mybroadband report, the SARB’s e-rand research would also look into the possibility of issuing the CBDC for retail purposes. Kganyago elaborated:

    The study’s goal is to see if it would be practical, suitable, and desirable for the SARB to issue a CBDC to be used in South Africa as a retail alternative to cash.

    Imminent Crypto Regulation

    The confirmation by Kganyago of the SARB’s CBDC study comes as South Africa prepares to regulate digital currencies. According to Bitcoin.com News, the Intergovernmental Fintech Working Group (IFWG) recently produced a position paper for the regulation of cryptocurrency service providers.

    Several South African banks are already prohibiting customers from purchasing cryptocurrency on foreign exchanges. According to reports, banks are taking this measure at the request of regulators, who want the country’s exchange control rules expanded to cover cryptocurrency.

    Meanwhile, no timetable has been set for when the SARB’s study will be completed or when the central bank would begin piloting this.

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