SARB Rejects Retail CBDC Push, Prioritizes Payment System Modernization
The South African Reserve Bank (SARB) has dismissed calls for a retail central bank digital currency (CBDC), citing more pressing financial infrastructure needs. In a November 2025 position paper, the central bank argued that a digital rand wouldn't address Core challenges like financial inclusion—16% of adults remain unbanked—without solving offline access, low fees, and universal usability.
Instead, SARB will focus on upgrading legacy payment rails and exploring wholesale CBDC applications. The decision contrasts with global CBDC momentum but reflects pragmatic prioritization: South Africa's financial system requires foundational improvements before digital currency experiments.
The bank left the door ajar for future reconsideration, pledging to monitor international developments. This cautious stance highlights the divergence between CBDC HYPE and localized economic realities.
