South Africa Regulators Clarify Stance on Cryptocurrencies and Stablecoins

The South African government has reiterated its stance on cryptocurrencies and stablecoins, clarifying that they are neither money nor funds under the country's National Payments System Act.

Regulators have expressed concerns that widespread adoption of cryptocurrencies could compromise the efficiency of the National Payments System (NPS) and trigger broader systemic risks across the financial sector.

In an effort to mitigate these vulnerabilities, the South African government aims to expand the regulatory perimeter of the NPS Act. The revised law will provide the South African Reserve Bank with the authority to declare and regulate payment instruments other than money.