The central bank declared in a press release published earlier today that new studies to investigate the advantages and disadvantages of a domestic CBDC will be made.
In the paper, SARB stated that the research will look at the feasibility of using the CBDC as electronic legal tender for retail use, complementary to fiat currency.
“The feasibility study will include practical experimentation across different emerging technology platforms, taking into account a variety of factors, including policy, regulatory, security and risk management implications.”
The purpose of this study is to see if the implementation of the general-purpose retail CBDC would be compatible with SARB’s authority and strategy of the central bank.
“The objective of the feasibility study is to consider how the issuance of a general-purpose CBDC will feed into the SARB’s policy position and mandate. The SARB is one of a growing number of central banks looking at the feasibility of the issuance of digital currencies.”
Other countries are also contemplating a digital currency linked to traditional money. The National Bank of Georgia also announced earlier this month that it is thinking of launching its own CBDC. The bank believes that this move towards crypto will make the payment service more efficient through new technologies.
The deputy governor of the Bank of England also declared in May that the issuing of a central bank digital currency in the future could turn into reality if public money will outlive private replacements. In fact, the launching of CBDC would help in the increasing skepticism of people towards the public currency.