Central banks worldwide control their country’s financial situation and how people can use their money. They can control the currency and what assets people invest in while in the country. The central banks also can set up restrictions on some investment opportunities. They can also work with the government to impose restrictions on other investment opportunities to ensure the citizens are safe and the economy is stable.
In Africa, some Central Banks have had a huge impact on cryptocurrency adaptation in one way or the other. One of the most impactful central banks is the South African Central Bank, commonly referred to as the South African Reserve Bank. Initially, the bank did not support cryptocurrency investment. They, therefore, advised people against investing in cryptocurrency, which also led to crypto taxation. But from recent reports, things are about to get better.
South Africa Reserve Bank
According to a webinar that happened a few days ago, South African Reserve Bank Deputy governor, Kuben Naidoo, shared some of the changes happening in the institution. All the points he provided showed a chance to improve cryptocurrency adaptation in the country and on the continent. Some of the most critical points he offered include the following:
The first is that the SARB has a change of heart about cryptocurrency. They were harsh to the technology when it started, and people started adopting the currency.
The bank has realised the potential the virtual currency might have for the economy and the people. His words insinuated that the SARB is considering cryptocurrency as a financial asset. This means cryptocurrency is about to be an alternative investment to bonds, securities, and precious metals. Investors who have struggled with legal issues and taxes when investing in cryptocurrency are about to have a sigh of relief. According to the deputy governor, the SARB is working on regulating cryptocurrency to improve its adaptation in the country. Mr Kuben says that the reserve bank is improving cryptocurrency security and regulations to improve adaptation and security. The developed cryptocurrency regulatory framework will run in the next 18 months.
South Africa Framework goals
Their goal is to have the framework in place in 2023. Some of the things they are targeting by introducing the framework include;
- The first is to create a safer cryptocurrency ecosystem in the country. The regulations will make it easier and safer to invest in cryptocurrency without the fear of being hacked or scammed.
- Another way the regulation will address illegal activities carried out through cryptocurrency. These include money laundering, hacking, and the most recent crypto crime, crypto mugging.
To conclude, South Africa is trying to make similar moves with other countries working hard to improve cryptocurrency adaptation worldwide. Other countries that have made similar moves include Australia, Singapore, and the United Kingdom.