Serb Eye Digital Round to reduce the cost of cross-border payments

A digital rand in South Africa could reduce the high cost of cross-border financing for banks, but its introduction is still a few years away, a senior central bank official said.

However, crypto resources control Is closed and may be effective within nine to 15 months, south African Reserve Bank of India (CERB) Deputy Governor Kuben Naidu told Reuters in an interview.

According to a 2021 World Bank report, remittances from South Africa cost 13% of a transaction, more than double the average of the top 20 world economies in the G20.

The cost of sending money to South Africa is 7.2%.

Some countries are planning to launch e-versions of traditional currencies, known as central bank digital currencies (CBDCs) and studying how the underlying technology can be used.

China’s digital yuan project is the most advanced in the larger economy, albeit from the central bank Eurozone CBDCs in the United States have different stages of research.

Last year, Nigeria’s central bank launched an eNaira for use by ordinary citizens.

South Africa conducted small-scale experiments with a wholesale CBDC and participated in a cross-border pilot with the central banks of Malaysia, Australia and Singapore.

The next step is for the regulators to examine the digital rand on a larger scale and create rules for its use.

“We are still learning, we are still testing,” Naidu said.

Meanwhile, Naidu South said African The Reserve Bank seeks control of crypto assets to prevent theft, money laundering and devaluation of monetary policy and expects it to be effective within the next 15 months.

“If crypto assets become a ubiquitous currency, you could undermine the central bank’s authority,” he said.

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