South Africa Shelves Retail CBDC Rollout, Prioritises Existing Digital Payments Reforms
The findings confirm that although a retail CBDC is technically viable and can be aligned with regulatory and policy goals, other ongoing modernisation initiatives should remain the country’s immediate priority.
The South African Reserve Bank (SARB) has concluded that there is no urgent requirement to introduce a retail central bank digital currency (CBDC), following the release of its position paper and background study on the subject. The findings confirm that although a retail CBDC is technically viable and can be aligned with regulatory and policy goals, other ongoing modernisation initiatives should remain the country’s immediate priority.
A retail CBDC, envisioned as a digital version of cash for everyday transactions, was assessed in the context of South Africa’s evolving payments landscape and financial inclusion efforts. SARB’s research found that digital payment adoption continues to grow due to innovations from banks, fintechs, and public-sector initiatives. However, physical cash remains essential for many South Africans due to infrastructure gaps, affordability challenges, and network reliability issues.
SARB emphasised that access to central bank money in physical form continues to provide financial stability, reinforcing confidence in the system. The bank noted that existing programmes — including the Payment Ecosystem Modernisation Programme, PayShap expansion, QR standardisation, open banking frameworks, and greater non-bank participation in the national payment system — should take precedence in the short to medium term.
While SARB is not advocating for the rollout of a retail CBDC at this stage, it recognises potential long-term value, particularly in maintaining public access to central bank money in a digital economy and supporting future financial innovation. The bank will continue to monitor developments and remain prepared to act should the need arise.
SARB’s next phase will shift focus toward wholesale CBDC exploration, reflecting global trends and potential gains in financial market efficiency, cross-border payments, and systemic resilience.
