SARB to study possible use of digital currency
The South African Reserve Bank (SARB) will begin its study on the possible use of a Central Digital Bank Currency (CBDC) for retail in South Africa.
A retail CBDC is a digital form of cash aimed at providing the best attributes of both cash and electronic payments.
The SARB announced it will investigate how digital currency operates on Tuesday.
"The objective of the feasibility study is to consider how the issuance of a general purpose CBDC will feed into the SARB’s policy position and mandate," said the bank in a statement.
"The study will focus on the issuance of a domestic CBDC that can be used by consumers in South Africa for general retail purposes."
The study into digital currency is expected to conclude next year.
"The feasibility study will include practical experimentation across different emerging technology platforms, taking into account a variety of factors, including policy, regulatory, security, and risk management implications.
"The CBDC feasibility study is expected to be concluded in 2022. The SARB has, at this stage, made no decision to issue a retail CBDC."
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