Ah, South Africa. A land of sunshine, braai fires, and now… deferred digital currencies. It appears our esteemed South African Reserve Bank (SARB) has reached a conclusion of momentous… well, non-momentousness. They’ve decided, after a positively Herculean effort of research, experimentation, and endless cups of rooibos tea, that a central bank digital currency (CBDC) for the common man (and woman, naturally!) isn’t strictly necessary right now. One shudders to think what a truly necessary situation might entail. Perhaps a rogue squadron of accountants demanding payments in carrier pigeons? 🐦

The SARB has released a position paper – a document of such gravity it surely weighs several kilograms – detailing their findings. Years of toil, stakeholder consultations that undoubtedly involved many biscuits, and now… a polite shelving of the retail CBDC. They will, instead, focus on improving the existing payment systems. A sensible decision, one might argue, if one were feeling particularly charitable.

The Digital Rand: On Hold (For Now)

“Our research,” the SARB proclaims with the confidence of a seasoned bureaucrat, “found that a retail CBDC is technically possible. But… why bother? It’s not like we’re facing a national emergency of insufficient digital rand.” One can almost picture the shrugs and weary sighs echoing through the hallowed halls of the central bank. It aligns with ‘policy objectives,’ you see. Very important. Very official.

For the time being, their energies will be devoted to ensuring the existing financial infrastructure functions as it should. And, naturally, bringing non-banks into the fold. Because everyone deserves a slice of the financial pie, even if they’d rather spend their money on biltong. 🥩

The report notes the potential for financial inclusion. A noble cause, to be sure. But it also seems to imply that many South Africans are perfectly content with their current method of exchanging value – which, let’s be honest, often involves a generous dose of good faith and a firm handshake. 🤝

But fear not! This isn’t a permanent rejection of the digital rand. The SARB assures us that the future may hold such a thing. A rather hedged promise, wouldn’t you say? It’s like saying, “Perhaps one day, pigs will fly, but don’t hold your breath.”

“[…] In the long run, we might need one. Public access to central bank money is important, even in the digital age! And opportunities for innovation… who can resist innovation?” the SARB muses with a wistful sigh. Truly, the possibilities are endless! (Or, at least, theoretically so.)

Critically, any digital currency must be as good as cash. Offline capability, universal acceptance, ease of use, affordability, and privacy. High standards, indeed! One wonders if achieving all of those simultaneously could require a touch of… magic? ✨

Now, the focus shifts to wholesale CBDCs – essentially, a digital rand for businesses and banks. A far less exciting prospect, perhaps, but certainly more practical. Think of it as the sensible, well-behaved cousin of the retail CBDC.

“Exploring wholesale CBDCs will help us understand interoperability and efficiency, which might be useful if we ever decide to bother with a retail version.” The SARB speaks with a cautious optimism that suggests they’ve seen a thing or two. And perhaps they’ve realized that sometimes, the best course of action is… to wait and see.

The Crypto Menace 😈

South Africa is one of 36 countries pondering the mysteries of CBDCs. But only a few – Nigeria, Jamaica, and The Bahamas – have actually launched them. And, as it happens, they haven’t exactly taken the world by storm. Low adoption rates and modest transaction volumes suggest that digital currencies aren’t always the silver bullet they’re cracked up to be.

Instead, the world is captivated by stablecoins! A particularly worrying development, according to the SARB. In South Africa, trading volumes have exploded – nearly 80 billion rand ($4.6 billion) by October, a significant leap from a paltry 4 billion rand in 2022. This, naturally, presents “significant risks” to the financial system. A catastrophe in the making, one might say!

The SARB has issued a warning about the dangers of crypto and stablecoins. A warning that sounds suspiciously like a frantic attempt to put the digital genie back in the bottle. They’re working on regulations, of course. Because that’s what regulators do. They regulate. It’s a profoundly important task.

The Financial Sector Conduct Authority is licensing crypto exchanges. But it’s all a bit fragmented. The crypto landscape expands, and the regulators frantically try to keep up. It’s a bit like chasing a greased piglet at a village fair. 🐷

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2025-11-28 11:33