The post South African Reserve Bank Eyes Wholesale CBDC Over Retail, Flags Crypto Risks appeared on BitcoinEthereumNews.com.

The South African Reserve Bank has determined there is no strong immediate need for a retail central bank digital currency (CBDC) in South Africa, prioritizing payments system modernization and exploring wholesale CBDC uses for cross-border efficiency instead. SARB’s paper highlights technical feasibility but emphasizes existing initiatives over retail CBDC deployment. Focus shifts to wholesale applications and monitoring global developments for potential future action. About 16% of South African adults remain unbanked, yet a CBDC must offer benefits like offline access and privacy to succeed. South Africa CBDC update: SARB sees no retail need now, eyes wholesale options. Modernize payments first. Stay informed on global crypto trends for investment insights—explore more at en.coinotag.com. What is the South African Reserve Bank’s stance on a retail CBDC? South Africa CBDC plans are not a near-term priority for the South African Reserve Bank (SARB), as outlined in their recent position paper. The central bank states there is no strong immediate need for a retail CBDC, given the technical feasibility but lack of urgency. Instead, SARB recommends focusing on modernizing the national payments system and expanding non-bank participation to address current challenges. Why is SARB prioritizing payments modernization over a retail CBDC? The SARB’s analysis reveals that South Africa’s payment system faces persistent issues, including an unbanked population of approximately 16% among adults, according to data from the central bank’s research. A successful retail CBDC would need to provide advantages comparable to cash, such as offline functionality, universal acceptance, low transaction costs, user-friendly interfaces, and robust privacy protections. However, with ongoing programs to upgrade infrastructure and include more financial providers, SARB believes these efforts should take precedence. The bank explicitly notes that while a retail CBDC remains an option, it will continue monitoring international trends and be ready to adapt if circumstances change. This measured…

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Filed under: News - @ November 28, 2025 5:22 am