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Reserve Bank exploring feasibility of digital currency for South Africa

south africa rand digital currency

The South African Reserve Bank (SARB) has announced that it has started a study to investigate the feasibility of a digital currency for the country.

The study will explore the “feasibility, desirability and appropriateness of a central bank digital currency (CBDC) as electronic legal tender, for general-purpose retail use, complementary to cash”, the SARB said in a statement.

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This currency would be used by local consumers for general retail use.

However, the study aims to investigate how this currency would fit into the SARB’s policies and mandates. The bank says a growing number of central banks are exploring digital currencies in their own countries.

But numerous considerations need to be taken into account. This includes regulations, security, and risks involved in the use of this type of currency.

According to the bank. the study will conclude in 2022. The SARB has yet to make any decision regarding whether it will go forward with issuing a digital currency locally.

Feature image: stevepb/Pixabay

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