South Africa Holds Back on Retail CBDC Plans: Details

The South African Reserve Bank (SARB) has indicated that it does not expect to introduce a CBDC for everyday use anytime soon. In a paper released on Thursday, the bank said there is no “strong immediate need” for a retail version of a digital rand, even though developing one is technically possible.

Officials said that efforts already underway to upgrade the national payments system should take priority. These programs include expanding participation for non-bank entities and improving the country’s payments infrastructure. According to the SARB, these steps offer more practical benefits in the short term than launching a retail CBDC.

The bank added that it will maintain a watching brief on global developments and remain ready to adjust its stance if conditions change. Instead of pushing ahead with a retail design, the SARB plans to place greater attention on wholesale CBDC models and on improving cross-border transfer efficiency.

Central Bank Flags Concerns

The research behind the paper assessed whether a retail CBDC could resolve gaps in the current payments landscape. One of the central challenges is that around 16% of adults in South Africa still do not have access to banking services. 

The SARB noted that any retail digital currency would need to at least match the convenience of cash. This would include the ability to function offline, broad acceptance, straightforward use, low costs, and privacy protections.

South Africa has recently taken a more cautious tone toward digital assets. Earlier this week, the central bank released a separate report warning that crypto and stablecoins pose new risks for financial technology growth. It also cautioned that crypto can be used to bypass Exchange Control Regulations governing the movement of funds into and out of the country.

Global CBDC Efforts Advance at Mixed Pace

Only three nations have officially launched a CBDC so far: Nigeria, Jamaica, and The Bahamas, according to the Atlantic Council’s CBDC Tracker. Meanwhile, 49 countries are testing digital currencies in pilot programs, 20 are in active development, and 36 are carrying out early-stage research.

The United States has paused its CBDC plans under the Trump administration, leaving its future direction uncertain.