South Africa postpones CBDC plans, prioritizes modernization of existing payment systems

The South African Reserve Bank (SARB) has just announced that it will not yet implement a central bank digital currency (CBDC) for retail, as the country currently does not have an urgent need. In the position report published on November 27, 2025, SARB confirmed that a retail CBDC is technically and legally feasible, but upgrading the existing payment system provides greater practical effectiveness.

Instead of issuing a CBDC, the SARB will focus on modernizing the national payment infrastructure, including the Payment Ecosystem Modernization Program and expanding PayShap – a fast payment system aimed at promoting financial inclusion and reducing transaction costs.

Meanwhile, research on wholesale CBDC continues, serving interbank payments and cross-border transactions. SARB also warns of risks from cryptocurrencies and stablecoins, while it will continue to monitor global trends before making a final decision on retail CBDC.