South Africa Delays Retail CBDC in Favor of Payment System Modernization
The South African Reserve Bank (SARB) has shelved plans for a retail central bank digital currency (CBDC), opting instead to prioritize reforms to its national payment infrastructure. After years of research, the central bank concluded that a CBDC is technically feasible but not immediately necessary. The decision reflects a strategic shift toward enhancing existing systems rather than introducing new digital currency frameworks.
SARB will focus on accelerating payment system upgrades to improve settlement efficiency and financial inclusion. The bank emphasized that these measures—ranging from infrastructure modernization to expanded participation for non-bank entities—will deliver near-term benefits without the complexities of a CBDC rollout. This approach aligns with broader efforts to strengthen South Africa’s digital finance ecosystem under current regulatory policies.
