The South African Reserve Bank (SARB) has concluded in a newly released November 2025 position paper that there is no “strong immediate need” for a retail central bank digital currency (CBDC). Although technically feasible, the bank argues that deploying a digital rand for everyday users isn’t necessary at present.
Instead, SARB says its priorities remain elsewhere – particularly on upgrading the national payments infrastructure and broadening participation in the payments system beyond traditional banks.
As reported by BitKE in 2021, The Reserve Bank said it was studying the use of CBDC in retail payments to investigage if it would be feasible, appropriate, and desirable, for the SARB to issue a CBDC to be used for retail purposes, complementary to cash in South Africa.
South Africa Now Looking to Upgrade From a Wholesale to a Retail CBDC
Interestingly, a 2024 report by Gallup provided the first comprehensive evaluation of the early effects of macroeconomic indications and subjective well-being of central bank digital currencies (CBDCs) adoption.
Despite considerable excitement about CBDCs, the analysis indicated that their effect on major economic indicators like GDP growth and inflation has been limited. The study’s statistical models examined countries that either tested or introduced CBDCs between 2019 and 2023 and found no evidence linking CBDCs with increased GDP per capita or reduced inflation in countries like South Africa, Sweden, Thailand, and South Korea. These results challenge the prevailing narrative that CBDCs are a cure-all for economic issues, especially in low- and middle-income countries.
STUDY | South Africa Leads Globally Among Countries with Largest Declines in CBDC Interest
It now looks like that study has not concluded with no viability based on the latest position paper.
That said, the door isn’t closed.
SARB will continue to observe developments around digital currencies globally and stay prepared to act if conditions shift. Meanwhile, the bank plans to pivot toward exploring wholesale CBDC use cases and improving cross-border payment efficiency.
In deciding against a near-term retail launch, SARB noted that for a CBDC to succeed, it must match – or surpass – the advantages of cash:
Offline functionality
Universal acceptance
Low cost
Ease of use, and
Strong privacy protections.
Given these stringent requirements, current digital-payment and banking reforms appear more urgent and effective.
Some of these include:
PayShap: instant payments in ≤10 seconds with pay-by-proxy via alias
eKYC digitization
QR code standardization
Open banking / Open finance frameworks
Expanding non-bank participation in the national payments system (fintechs + e-money issuers)
FINTECH AFRICA | How Digital Payment Systems Like #PayShap Are Driving the Cashless Economy in South Africa
Since launch in March 2023, the payments industry has processed over 74.2 million PayShap transactions, totaling $2.64 billion.https://t.co/7xDSeV3bvK @SAReserveBank pic.twitter.com/pmrGi1BJts
— BitKE (@BitcoinKE) October 16, 2024
The report also notes why consumers still prefer cash, which includes:
Tangible financial control
Backup during connectivity failures
Universal merchant acceptance, especially in rural areas
No need for devices, internet, or power
Finally, the bank reiterated that although about 16% of adults in South Africa remain unbanked, launching a digital currency wouldn’t automatically solve financial-inclusion challenges – especially without infrastructure that ensures broad accessibility and reliability.
REPORT | South Africa’s Online Retail Sector Outpacing Physical Retail by 10x – Crypto is Least Preferred Payment Option
Stay tuned to BitKE for updates into the evolving CBDC space in Africa.
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