The Intergovernmental Fintech Working Group of South Africa will analyse use cases pertaining to stablecoins and deliberate on suitable policy and regulatory measures.
Tokenization’s effect on home markets is another thing the committee is thinking about. For real-world assets (RWA) on a blockchain, tokenization is the process of representing them as securities. The team intends to release by December a discussion paper detailing the regulatory ramifications of tokenization and blockchain-based financial market infrastructure.
South Africa, like many other nations, has been refining its stance on cryptocurrencies. The Financial Sector Conduct Authority (FSCA) and the Financial Intelligence Centre (FIC) began registering crypto asset service providers last year after recognising cryptocurrencies as financial products. Stablecoins are a new kind of cryptocurrency that the nation will use this year, according to a budget document released on Wednesday by the Treasury Department. Digital assets known as stablecoins have a value that is correlated with assets such as the US dollar. The majority of the ruling party may be in jeopardy in the May 29 presidential election, but a change in leadership is unlikely to affect the current administration’s stance on cryptocurrencies.