Central banks, however, are exploring the use of central bank digital currencies, which could be of more benefit and would likely be safer. As part of its fintech Programme, the SARB has taken cognisance of the investigatory studies done on crypto assets, and has placed high emphasis on monitoring the developments in this area.
It has adopted a ‘back to basics’ approach by focusing on the underlying economic function or activity being performed (deposit taking, payments, lending and investments) rather than the specific technology. The SARB’s position on crypto-assets is that these are not recognised as currency or legal tender in South Africa, and that only the SARB is allowed to issue legal tender.