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- South Africa delays retail CBDC plans while it pushes ongoing payment system upgrades.
- The central bank shifts focus toward wholesale CBDC use and cross border payment efficiency.
- Research shows limited financial access and digital risks remain major barriers to a retail CBDC.
The South African Reserve Bank has decided to delay any move toward a retail central bank digital currency. The bank signaled that current payment modernization efforts offer more immediate value.
South Africa’s central bank says CBDCs can wait 😌
— Seven Crypto 🐋 (@SevenWinse) November 28, 2025
So, the South African Reserve Bank just dropped a paper saying there’s no rush to roll out a retail CBDC. While it’s technically doable, they’re more focused on upgrading the current payment systems and getting more non-banks… pic.twitter.com/rZtBUhDR5S
The update places the focus on improving existing systems while keeping future digital options open. The position reflects an assessment that retail deployment remains possible, yet not necessary at this point.
Focus Shifts Toward Wholesale and Cross-Border Uses
The bank plans to direct more attention toward wholesale CBDC applications. It also aims to examine cross-border payment efficiency, which remains an ongoing challenge. The South African Reserve Bank recently issued a stark warning regarding the rising use of digital assets and stablecoins in the country.
The shift highlights a need to support financial institutions that manage large-value transactions. These transactions demand secure and fast settlement features. The updated stance shows that the bank intends to build capacity in areas where system-wide improvements are most likely. The approach also keeps technical development active without committing to retail circulation.
Assessment Highlights Gaps in Financial Access
The research behind the decision reviewed whether a retail CBDC could fix issues in the national payment landscape. The findings indicate that major gaps remain. Roughly 16% of adults still do not use formal banking services. This barrier limits the potential reach of any digital currency.
The analysis also shows that a successful CBDC must match the strengths of cash. These strengths include offline capability, broad acceptance, low user costs, simple interfaces, and strong privacy protection. These requirements set a high baseline for any future rollout. They also point to long-term design challenges that need further study.
Growing Concerns About Crypto-Related Risks
The central bank has expressed rising concerns about digital assets in recent publications. It identified crypto assets and stablecoins as risks within technology-driven financial innovation. These risks include potential misuse for avoiding Exchange Control Regulations. These regulations govern how funds move into and out of South Africa. The warnings appear during a period of intensified global debate over digital finance oversight.
They also align with broader efforts to reinforce financial stability. The update comes as only three countries currently operate a live CBDC. They are Nigeria, Jamaica and the Bahamas. There are still numerous others in pilot stages, development stages or early research stages. The United States halted its own plans under the Trump administration. The global landscape still shifts, and South Africa intends to maintain readiness as conditions evolve.