The South African Reserve Bank (SARB) has released a Position Paper and Background Note on the need for a retail central bank digital currency (CBDC) in South Africa.
Following extensive research, technical experimentation, and stakeholder engagement, the SARB has decided that, even if a retail CBDC is technically feasible and could assist innovation and ensure continued public access to central bank funds, there is no compelling evidence that there is a need for immediate implementation.
The financial institution has mentioned that the utmost current priority remains the modernisation of South Africa’s payment ecosystem and scaling participation in the national payment system. In the future, the SARB intends to continue to monitor developments and direct its focus toward exploring wholesale CBDC applications. Through this, the financial institution aims to ensure readiness if the need for retail CBDC arises in the future.
With these publications, the SARB intends to provide a holistic view of its policy stance and the evolving payments landscape across South Africa.
SARB’s view on the crypto market
Publishing the position paper on retail CBDC needs comes just a few weeks after SARB flagged crypto and stablecoins as new threats following increased adoption. The financial institution’s second Financial Stability Report for 2025 underlined concerns regarding regulatory gaps as crypto adoption scaled at a national level.
Moreover, the SARB’s concerns came after previous warnings about the risks linked to digital currencies. The central bank has kept its cautious approach to cryptocurrencies and innovation in the sector.
South Africa’s crypto landscape
Recent data suggests that South Africa’s crypto market is expected to expand and reach USD 25,658.11 million by 2033, from USD 11,179.80 million in 2024. This increase is mostly driven by the need for efficient and cost-effective payment solutions in urban and semi-urban areas, with more individuals, businesses, and platforms integrating cryptocurrencies into their operations. Additionally, awareness about blockchain-based ownership is contributing to the expansion of the region’s crypto market share.
