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Cryptocurrency Is Not Money, Says South Africa Central Bank

Cryptocurrency Is Not Money, Says South Africa Central Bank 101
Source: iStock/only_fabrizio

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.

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.’”

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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.

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