South Africa Risks Undermining Economic Competitiveness with Stablecoin Restrictions

Luno CEO James Lanigan has warned that proposed Capital Flow Management Regulations in South Africa could severely harm the country's economic competitiveness by restricting stablecoin use.

The regulations, which are currently open for public comment until June 30, 2026, aim to overhaul the country's decades-old exchange control regime. However, industry stakeholders have raised concerns that the rules could block firms from using a $33 trillion global stablecoin payment market.

Lanigan points out that stablecoins are already settling more value annually than Visa and Mastercard combined, with Bloomberg data showing that they accounted for $33 trillion in payments and blockchain transfers in 2025. He warns that the current wording of the regulations could prohibit local enterprises from using stablecoins to execute cross-border payments or repatriate funds back home.

The CEO emphasizes that local stablecoins are critical infrastructure for supporting domestic payments and treasury flows, while dollar stablecoins provide a fast bridge to global commerce and cross-border settlement. He urges regulators to revise the draft Capital Flow Management Regulations to unlock the economic growth potential of stablecoins, warning that without their integration into the local financial mainstream, South Africa will limit its competitiveness in the modern economic system.