South Africa Central Bank Delays Retail CBDC in Favor of Payments System Upgrades
The South African Reserve Bank has tempered expectations for a retail central bank digital currency, citing no immediate necessity for its launch. Instead, the institution will prioritize modernizing the existing payments infrastructure to enhance settlement speeds and broaden access for non-bank providers.
Wholesale digital currency applications and cross-border payment efficiency now take precedence. The central bank warned that cryptocurrencies and stablecoins present financial stability risks, including potential circumvention of exchange controls.
While technical feasibility for a consumer-facing CBDC exists, SARB officials maintain a watchful stance, reserving the right to act if future conditions demand it. The decision reflects a measured approach to digital currency adoption amid evolving global financial landscapes.
