South Africa Central Bank Shelves Retail CBDC, Backs Payments Upgrade Instead
2025-11-28 15:45
South Africa’s central bank has cooled expectations for a retail central bank digital currency, saying the country does not face an urgent need to launch one and should focus instead on upgrading the existing payments system. Key Takeaways: South Africa’s central bank says a retail CBDC is not needed now and is prioritizing payments system upgrades instead. The SARB will focus on wholesale digital currency uses and improving cross-border payments. Officials also warned that crypto and stablecoins pose financial risks and could be used to bypass exchange controls. In a research paper published Thursday, the South African Reserve Bank (SARB) said a consumer-facing CBDC is technically possible but not necessary in the near term. SARB Prioritizes Payments Reform Over Retail CBDC Rollout The bank argued that current reforms aimed at improving the national payments rails, adding faster settlement, and widening participation by non-bank providers offer a more practical route to...
