Kganyago on digital currency: Reserve Bank will be a 'fast follower' | Business

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The South African Reserve Bank is eager to launch its own digital currency, but it won't be signing laws to allow people to walk into grocery stores and pay with that anytime soon. | News24_Business

Reserve Bank Governor, Lesetja Kganyago, told the World Economic Forum that SA won't be the first mover in issuing retail central bank digital currency .Reserve Bank Governor, Lesetja Kganyago, told the World Economic Forum that SA won't be the first mover in issuing retail central bank digital currency .

These digital currencies are a new type of money that exists only in electronic form. Instead of printing banknotes, a central bank will issue digital currency which can be transferred electronically. Much like cryptocurrency,"blockchain" technology is used to record transactions and the ownership of the currency. But unlike crypto, the digital currency will be guaranteed by the central bank.

SA's central bank was one of the early innovators when it ran the Project Khokha CBDC experiment. The SARB released a report on that experiment in April 2022. Through the experiment, it brought in 90% of the banks that process daily payments in SA and processed 70 000 transactions within two hours.

There are currently 120 countries studying or experimenting with CBDCs to see if their central banks can adopt them. Kganyago said there was no dispute that CBDCs can solve some real problems that developing countries face, including financial inclusion and the exorbitant cost of cross-border remittances.For this reason, it was understandable that some central banks might be concerned that their regional currencies could be dislocated if they don't adopt CBDCs quickly enough.

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_Business Always imitating never innovating..they waiting on a foreign country possibly USA to draw up a structured law to retain centralization & possibly create the blockchain tech too..

_Business Is my card payment not a digital currency? No monetary objects changed hands.

_Business i will always be thankful to God for giving me a reliable source no more lost,. through Brandonkaren11 Bitcoin mining investment platform

_Business Digital currency in a country with no electricity… classic 👏🏼

_Business Well. Realistically speaking the chances of it working are laughable. Majority of SAns living below poverty line, lack of digitalization in rural areas. Nigeria has rejected it as well because of the control risk associated in the system.

_Business Boswell Wilkie circus revival lol

_Business Fuckedcoin

_Business The banks are just keen to recoup some of the power that they are losing to decentralised finance and cryptos. CBDCs weren't even a blip on the radar before crypto came on the scene. Not only the banks, but all the overpaid crystal ball readers in the personal finance industry

_Business 😆😂😂😂😂

_Business CBDC’s main feature is that allows government to decide if, how, where & when you may spend the CBDC. When will that be explained to us?

_Business 1stly sort out other problems. Its laughable that this goverment chase wild dreams while tje smallest of things cannot be managed.

_Business BRICS ON PLAY

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