South African Reserve Bank (SARB) governor, Lesetja Kganyago, has once again confirmed that the central bank is presently studying the feasibility of issuing a digital currency. In his remarks at the SARB’s annual general meeting, governor Kganyago suggested his organization has embarked on this study to keep abreast with the growing trend of central banks that are studying CBDCs.
In the past few years, several central banks including a few in Africa have similarly announced their CBDC studies. Already, the central banks of Ghana and Nigeria have both revealed they will start piloting their respective digital currencies in the second half of 2021.
However, as the recent Mybroadband report quotes Kganyago explaining, the SARB’s e-rand study will also seek to understand the feasibility of issuing the CBDC for retail purposes. Kganyago explained:
The objective of the study is to investigate if it would be feasible, appropriate and desirable for the SARB to issue a CBDC to be used for retail purposes, complementary to cash, in South Africa.
Crypto Regulation Imminent
Kganyago’s confirmation of SARB’s study of the CBDC comes as South Africa readies to regulate digital currencies. As reported by Bitcoin.com News, a working group known as the Intergovernmental Fintech Working Group (IFWG) recently published a position paper that recommended the regulation of crypto service providers.
Already, several South African banks are blocking clients from using buying cryptocurrencies on overseas platforms. According to reports, this action by banks is being made at the behest of regulators who want the country’s exchange control rules to be extended to include cryptocurrencies.
Meanwhile, no date has been given as to when SARB is expected to complete its study and when the central bank expects to start piloting this.
What is your view on this revelation by the SARB governor? You can tell us what you think in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
South African Reserve Financial institution (SARB) governor, Lesetja Kganyago, has as soon as once more confirmed that the central financial institution is presently learning the feasibility of issuing a digital foreign money. In his remarks on the SARB’s annual common assembly, governor Kganyago recommended his group has launched into this research to maintain abreast with the rising development of central banks which are learning CBDCs.
Up to now few years, a number of central banks together with a couple of in Africa have equally introduced their CBDC research. Already, the central banks of Ghana and Nigeria have each revealed they may begin piloting their respective digital currencies within the second half of 2021.
Nonetheless, because the latest Mybroadband report quotes Kganyago explaining, the SARB’s e-rand research can even search to grasp the feasibility of issuing the CBDC for retail functions. Kganyago defined:
The target of the research is to research if it could be possible, acceptable and fascinating for the SARB to challenge a CBDC for use for retail functions, complementary to money, in South Africa.
Crypto Regulation Imminent
Kganyago’s affirmation of SARB’s research of the CBDC comes as South Africa readies to manage digital currencies. As reported by Bitcoin.com Information, a working group referred to as the Intergovernmental Fintech Working Group (IFWG) not too long ago printed a place paper that beneficial the regulation of crypto service suppliers.
Already, a number of South African banks are blocking purchasers from utilizing shopping for cryptocurrencies on abroad platforms. In accordance with experiences, this motion by banks is being made on the behest of regulators who need the nation’s alternate management guidelines to be prolonged to incorporate cryptocurrencies.
In the meantime, no date has been given as to when SARB is anticipated to finish its research and when the central financial institution expects to start out piloting this.
What’s your view on this revelation by the SARB governor? You possibly can inform us what you suppose within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons