Crypto does not qualify as currency, says South Africa’s central bank governor

Lesetja Kganyago, the South African Reserve Bank (SARB) governor, has argued against classifying crypto as currencies.

According to a report by MoneyWeb, the central bank chief likened crypto to assets rather than currency during an interactive session at the Wits Business School Leadership Dialogue.

According to South Africa’s central bank governor, cryptos only meet two of the three currency criteria, stating:

“A cryptocurrency is a store of value. It is a medium of exchange, but is not generally accepted. It’s only accepted by those who are participating in it.”

Kganyago’s comments are a common criticism leveled by central bankers and other actors in the legacy financial system against Bitcoin (BTC) and cryptocurrencies.

However, crypto is gaining greater acceptance as a payment means, especially in retail markets. El Salvador also recently became the first country to adopt Bitcoin as legal tender, a move that could be replicated among other Central American nations.

Card payment networks like Visa and Mastercard are also onboarding crypto payment options given the widespread adoption of cryptocurrencies.

Related: South African regulators issue fresh crypto investment warning

Commenting on SARB’s crypto mandate, Kganyago remarked that the central bank was looking to regulate the crypto market to protect investors. Crypto businesses in the country have previously warned that the lack of clear-cut regulations was harming the local cryptocurrency industry.

Indeed, the South African cryptocurrency scene has been rife with several fraudulent investment products that have siphoned millions of dollars from unsuspecting victims.

Back in July, operators of a South African crypto company AfriCrypt reportedly absconded following the disappearance of $3.6 billion in Bitcoin from the firm’s coffers. Mirror Trading International, another well-known crypto Ponzi scheme, has attracted international attention with the United States Federal Bureau of Investigation participating in the probe.

READ ALSO:  Bitcoloan Review 2021: Is Bitcoloan Legit Or Terrible Scam?

Kganyago also revealed that the central bank was interested in blockchain and that SARB experimented with the novel technology. As previously reported by Cointelegraph, SARB began the preliminary study of a possible retail central bank digital currency (CBDC) back in May.

Oladimeji AbubakarAugust 31, 2021

previous article

Jelly Roll Bio, Family, Marriage, Wife, Kid, and Net Worth

Oladimeji Abubakar

the authorOladimeji Abubakar

Hi, I’m Oladimeji Abubakar, a young Nigerian blogger and writer.
I’ve special interest in making money online just like many other people and this is why I chose the review niche where I’d get to show people the websites to join and the ones not to. I hope my reviews helps😀.

All posts byOladimeji Abubakar

Leave a Reply

Social connect:

Write your comment here

Name

Email

Save my name, email, and website in this browser for the next time I comment.

You Might Also Like

Crypto

Chinese banks explore e-yuan for selling investment funds and insurance

Oladimeji AbubakarNo comment

Crypto

‘Remarkable’ on-chain metrics could spell Bitcoin, Ethereum bull market return — new report

Oladimeji AbubakarNo comment

Posted on