The South African Reserve Bank says it does not see a near-term need for a central bank digital currency, arguing instead that the country should focus on modernizing its existing payments infrastructure.
In a paper published Thursday, the central bank said there is no “strong immediate need” for a retail CBDC, even though launching one would be technically possible.
It added that current efforts — including a payments system modernization program and initiatives to broaden non-bank participation in the national payment system — should remain the country’s main priorities for now.
“While the SARB does not currently advocate for the implementation of a retail CBDC, it will continue to monitor developments and will remain prepared to act should the need arise.”
The central bank said it will now focus on exploring wholesale CBDC use cases and improving cross-border payments, while continuing to monitor global developments around retail CBDCs.
Central bank issues crypto and stablecoin warning
The study assessed whether a retail CBDC could address gaps in South Africa’s payment landscape, noting that challenges remain, with about 16% of adults still unbanked.
For a CBDC to be viable, it would need to offer the same or greater benefits than cash — including offline capability, broad acceptance, low costs, ease of use, and strong privacy protections, the paper noted.
South Africa has recently taken a more cautious stance toward crypto. In a report released earlier this week, the SARB identified “crypto assets and stablecoins” as emerging risks within technology-driven financial innovation. It also warned that crypto can be used to circumvent Exchange Control Regulations governing the movement of funds into and out of the country.
Global CBDC race continues
According to the Atlantic Council CBDC Tracker, only three countries have officially launched a CBDC: Nigeria, Jamaica, and The Bahamas. Another 49 countries are currently running pilot programs, 20 are actively developing CBDCs, and 36 remain in the research phase. Meanwhile, the United States has paused its CBDC efforts under the Trump administration.
