The treasury of South Africa has unveiled its annual budget, which outlines its strategy to promote the adoption of digital payments and improve the lives of marginalized groups. The budget review for 2024 emphasizes the need for structural reforms and enhancing public financial management. As part of its efforts to drive digital payments, the National Treasury has announced upcoming changes to its crypto asset policy, specifically focusing on stablecoins.
In June 2021, a working group released a paper on crypto regulation, which will now be updated to include stablecoins as part of the crypto asset class. The group will also finalize a diagnostic assessment of the domestic stablecoin landscape. The report suggests that the Financial Intelligence Centre Act may be amended to require all institutions to report crypto transactions exceeding 49,999 South African rand ($2,650). Furthermore, South Africa intends to study the impact of blockchain-based tokenization on its domestic financial markets.
The working group is expected to publish a paper by December 2024 that will outline the policy and regulatory implications of tokenization and blockchain-based financial market infrastructure.
To drive digital payment initiatives, the South African government will collaborate with Switzerland’s State Secretariat for Economic Affairs and FinMark Trust in a three-year program. This program will focus on conducting four pilot projects related to digital payments. These projects include community digitalization, digitizing payments for informal and low-income workers, facilitating cross-border remittances, and supporting cross-border trade. The goal of these initiatives is to encourage payment innovation and provide support to small and informal businesses.
South Africa’s previous efforts in digital disruption have proven successful, particularly for East African farmers. Through blockchain technology, these farmers were able to access global markets, resulting in expanded opportunities for them. In July 2023, AgTech firm Dimitra and One Million Avocados (OMA), a sustainability-focused tech group, announced a partnership aimed at assisting Kenyan avocado farmers in increasing production and improving quality using cutting-edge emerging technologies, including blockchain.
Magazine:
Wealthy, isolated, and boasting incredible beaches: Perth Crypto City Guide