South Africa Maintains Crypto Exclusion from Legal Tender Status
- On June 2, 2026, the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA) declared that crypto assets and stablecoins are not legal tender.
- Economists warn that wider adoption of crypto could disrupt the National Payments System (NPS) and affect system stability.
- The Intergovernmental Fintech Working Group (IFWG) will analyze local currency stablecoins by late 2026 to draft new policy responses.
- The SARB may consider regulating payment instruments other than money, such as crypto assets, under a revised NPS Act.
- Foreign currency-pegged stablecoins are unlikely to be sanctioned as payment instruments due to risks of currency substitution or ‘dollarization’.
South African regulators have reiterated that cryptocurrencies and stablecoins do not qualify as legal tender under current financial laws, emphasizing potential risks to the country’s monetary system from widespread crypto adoption.
The SARB’s decision reflects concerns over financial stability and aims to regulate digital currencies cautiously while exploring local stablecoin applications for future policy frameworks. (Source)
