The governor of the South African Reserve Bank (SARB), Lesetja Kganyago, has stated that cryptocurrencies should not be classified as a currency, rather they are to be likened as assets since they are not generally accepted.
During an interactive discussion at the Wits Business School Leadership Dialogues, the central bank chief compared bitcoin to assets rather than currency, according to MoneyWeb.
Cryptocurrencies only meet two of the three currency characteristics, according to South Africa’s central bank governor:
“A cryptocurrency is a store of value. It is a medium of exchange but is not generally accepted. It’s only accepted by those who are participating in it.”
Central bankers and other actors in the legacy financial system frequently criticize Bitcoin (BTC) and cryptocurrencies, as Kganyago did.
Crypto, on the other hand, is gaining acceptability as a payment method, particularly in retail marketplaces. El Salvador was also the first Central American country to adopt Bitcoin as legal cash, a step that could be duplicated by other countries in the region.
Given the increased acceptance of cryptocurrencies, card payment networks such as Visa and Mastercard are also integrating crypto payment options.
In response to a question about the SARB’s crypto mandate, Kganyago stated that the central bank was looking to regulate the crypto market in order to protect investors.
Crypto companies in the country have already expressed concerns that a lack of clear laws is damaging the local bitcoin industry.
Indeed, various bogus investment products have been widespread in the South African bitcoin industry, siphoning millions of dollars from unwary victims.
Crypto scams
Following the disappearance of $3.6 billion in Bitcoin from the company’s coffers in July, the operators of South African crypto corporation AfriCrypt apparently absconded.
Another well-known crypto Ponzi scheme, Mirror Trading International, has received international notice, with the US Federal Bureau of Investigation taking part in the investigation.
