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Cryptocurrency Is Not Money, Says South Africa Central Bank

Tim Alper
Last updated: | 1 min read

Francois Groepe, the Deputy Governor of the Reserve Bank (SARB), South Africa’s central bank, has hinted that the country may be set to introduce cryptocurrency regulations.

Source: iStock/only_fabrizio

Per Bloomberg, Groepe stated that the SARB “wants to ensure or establish whether there is compliance with the relevant financial surveillance or exchange-control regulations.”

Groepe also claimed cryptocurrencies should not be considered as money.

The official told Pretoria-based journalists, “We don’t use the term ‘cryptocurrency’ because [cryptocurrencies] don’t meet the requirements of money in the economic sense of the stable means of exchange, a unit of measure and a stable unit of value. We prefer to use the word ‘cyber-token.’”

Earlier this month, the SARB placed formal restrictions on South African companies’ attempts to trade cryptocurrencies via international exchange platforms, introducing a cap on trading. No such restrictions have been placed on the country’s own exchanges, however.

The SARB has also created a special unit that is currently reviewing the possibility of crypto-specific policy development and regulations.