South Africa’s central bank has stepped back from launching a retail central bank digital currency (CBDC), concluding that the country does not currently need one. In a position paper released on November 27, 2025, the South African Reserve Bank (SARB) said it will instead focus its resources on upgrading the national payments ecosystem and expanding access for non-bank financial players.
SARB Finds Retail CBDC Feasible, But Not Necessary
The central bank’s research determined that a retail CBDC could work from a technical and regulatory standpoint. However, the SARB found no “strong immediate need” for such a digital currency, given the substantial progress already being made through existing modernization efforts. The bank emphasized that improving current systems offers more practical benefits than introducing a completely new digital instrument.
Focus Shifts to Payment System Upgrades
Rather than pursuing a retail CBDC, the SARB will concentrate on strengthening South Africa’s payment rails. Key initiatives include the Payment Ecosystem Modernisation Programme and continued expansion of PayShap, the national fast-payment system aimed at boosting financial inclusion and reducing everyday payment friction. These upgrades are expected to address many of the objectives typically associated with retail CBDCs.
Wholesale CBDC Research Continues
While retail adoption is on hold, the SARB will continue exploring wholesale CBDC use cases, particularly those involving financial market settlement and cross-border transfers. The bank sees institutional-level digital currency experiments as more immediately valuable for efficiency and innovation within South Africa’s broader financial infrastructure.
Ongoing Concerns Over Crypto and Stablecoins
The SARB also reiterated its concerns about crypto assets, warning that cryptocurrencies and stablecoins pose financial-stability risks and may be used to bypass South Africa’s exchange-control regulations. The bank maintains that strong oversight is necessary as digital asset activity expands across the country.
Monitoring Global Trends
No final decision has been made regarding the future of a retail CBDC. The SARB said it will continue tracking international developments and will revisit the idea if South Africa’s policy needs, cybersecurity conditions, or global standards evolve.
