{"id":73876,"date":"2026-06-11T12:13:04","date_gmt":"2026-06-11T12:13:04","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/south-african-reserve-bank-backs-payshap-over-digital-rand-as-cassim-targets-real-time-payments\/"},"modified":"2026-06-11T12:13:04","modified_gmt":"2026-06-11T12:13:04","slug":"south-african-reserve-bank-backs-payshap-over-digital-rand-as-cassim-targets-real-time-payments","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/south-african-reserve-bank-backs-payshap-over-digital-rand-as-cassim-targets-real-time-payments\/","title":{"rendered":"South African Reserve Bank Backs Payshap Over Digital Rand as Cassim Targets Real-Time Payments"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">SARB has paused the digital rand rollout due to system efficiency and user privacy trade-offs.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Expanding private stablecoins may bypass SA regulations, eroding the rand\u2019s value and monetary authority.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">SARB will next focus on modernizing infrastructure via Payshap and Payinc to deliver real-time payments.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Digital Rand Trials Reveal Privacy and Speed Tradeoffs<\/h2>\n<p>The South African Reserve Bank (SARB) has no compelling need to immediately launch a digital version of its currency, a top official said, citing significant design tradeoffs and a higher priority to upgrade the nation\u2019s underlying payment infrastructure.<\/p>\n<p>While a central bank digital currency ( <span>CBDC<\/span>) is technically viable, the immediate focus must remain on making everyday transactions faster and cheaper for citizens through existing systems, Reserve Bank Deputy Governor Rashad Cassim reportedly <a href=\"https:\/\/dailyinvestor.com\/finance\/138102\/reserve-bank-shares-details-about-a-digital-south-african-rand\/\" target=\"_blank\" rel=\"noopener noreferrer\">said<\/a> in a recent address to the Gordon Institute of Business Science.<\/p>\n<p>The central bank\u2019s cautious stance comes despite growing pressure from private-sector innovations, such as <span>stablecoins<\/span>, which some economists warn could threaten South Africa\u2019s monetary sovereignty if left unchecked.<\/p>\n<p>The SARB has spent years researching a digital rand. It launched Project Khokha in 2018 to test distributed ledger technology (DLT)\u2014the decentralized tech underpinning <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">cryptocurrencies<\/a>\u2014followed by Project Khokha 2 to experiment with wholesale digital currencies and commercial bank tokens.<\/p>\n<p>While the trials proved a digital rand could successfully move and settle money, they also exposed deep operational challenges.<\/p>\n<p>\u201cKeeping transactions private is possible, but it complicates design and slows the system,\u201d Cassim said, noting that protecting user privacy came at the direct expense of clearing efficiency.<\/p>\n<p>Cassim also highlighted legal and technical hurdles, stating that decentralized networks lack automatic legal clarity on when a payment is considered \u201cfinal,\u201d and they do not naturally sync with traditional financial networks.<\/p>\n<p>\u201cDLT systems do not automatically interoperate with existing payment infrastructure,\u201d Cassim said.<\/p>\n<h2>Upgrading the \u2018Plumbing\u2019 First<\/h2>\n<p>Instead of the <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-central-bank-digital-currencies\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">CBDC<\/a>, the central bank is prioritizing the modernization of what Cassim called the \u201cplumbing of the financial system\u201d\u2014the financial market infrastructures that quietly route money behind the scenes.<\/p>\n<p>While South Africa has historically led its peers in large-scale wholesale banking payments, Cassim acknowledged the country has lagged behind in fast, real-time retail payments for regular consumers.<\/p>\n<p>The bank is actively trying to close that gap through Payshap, a real-time digital payment service, and by taking control of clearing house Bankserv Africa to establish a payments utility called Payinc.<\/p>\n<p>\u201cThe compelling need is to modernize the payment system to give every South African fast, simple and secure digital payments,\u201d Cassim said.<\/p>\n<p>The decision to pause a digital rand carries risk. As private entities increasingly drive financial innovation and promote <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-defi-decentralized-finance\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">decentralized finance<\/a>, the central bank faces a battle to maintain its grip on the money supply.<\/p>\n<p>Some analysts warn that the government\u2019s slower pace could backfire. Dawie Roodt, chief economist at the Efficient Group, warned that South Africa\u2019s outdated foreign exchange regulations are failing to keep up with financial technology.<\/p>\n<p>Without modern regulations or a digital alternative backed by the state, Roodt warned that citizens may eventually <a href=\"https:\/\/news.bitcoin.com\/economist-dawie-roodt-warns-south-africans-may-drop-local-currency-as-crypto-rules-tighten\/\">ditch the traditional financial system<\/a> entirely in favor of private <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a>.<\/p>\n<p>Such a shift poses a direct threat to the Reserve Bank\u2019s primary mandate: controlling the money supply and protecting the value of the rand. If citizens bypass the national currency, the central bank\u2019s authority is effectively eroded\u2014a reality that has led to persistent calls from some sectors for a digital rand.<\/p>\n<p>For now, the Reserve Bank is betting that fixing its current infrastructure will be enough to keep <a href=\"https:\/\/news.bitcoin.com\/south-africa-rules-out-foreign-stablecoins-as-payment-tools-to-curb-dollarization\/\">private alternatives at bay<\/a>, keeping the digital rand on the shelf until the technological and legal tradeoffs can be justified.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/south-african-reserve-bank-backs-payshap-over-digital-rand-as-cassim-targets-real-time-payments\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways SARB has paused the digital rand rollout due to system efficiency and user privacy trade-offs. Expanding private stablecoins may bypass SA regulations, eroding the rand\u2019s value and monetary authority. SARB will next focus on modernizing infrastructure via Payshap and Payinc to deliver real-time payments. Digital Rand [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":73877,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73876"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=73876"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/73877"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=73876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=73876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=73876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}