South Africa’s Intergovernmental Fintech Working Group will conduct analytical research on the use cases of stablecoins and will pay attention to the consideration of appropriate policy measures and regulation of the digital currency during 2024.
The mentioned group will also consider the potential effect of tokenization on domestic markets. Tokenization is the process of the representation of so-called real-world assets, including securities, on the blockchain. The group intends to post a document that will contain the regulatory implications of the mentioned process and the blockchain-based financial market infrastructure in the public information space by December.
South Africa is currently taking measures to improve its cryptography approach. Many other countries are also making efforts to do so. In 2023, the Financial Sector Conduct Authority (FSCA) and the Financial Intelligence Center (FIC) announced that cryptography officially received the status of a financial product. Also, in South Africa, a practice was introduced last year in which providers of services involving the use of crypto assets are registered by local regulators.
In 2024, in the mentioned country, stablecoins will receive the status of a particular type of cryptocurrency. The relevant information is contained in the budget document of the Treasury Department of South Africa, which was published last Wednesday, February 21.
Stablecoins are digital assets whose value is tied to the exchange rate of a real currency, for example, the US dollar, the price of a certain product, or the stock of some company.
Presidential elections will be held in South Africa at the end of May. According to experts, the majority of the ruling party may be under threat, but the likelihood that the country’s approach to cryptography will be revised against the background of political changes is minimal.
As we have reported earlier, MetaMask and Xion Global Redefine Web3 Payments in South Africa.
