The South African Reserve Bank (SARB) has issued a warning regarding digital assets and stablecoins and identified them as a new and growing risk to the nation’s financial stability. At the same time, the warning, contained in the central bank’s second financial stability report for 2025, highlights a significant increase in local adoption.
According to the revealed data, the three largest local crypto exchanges had a combined 7.8 million users as of July, with approximately $1.5 billion held in custody at the end of 2024. The SARB specifically cited the borderless nature of these assets as a concern, noting that they could be used to “circumvent the provisions of the Exchange Control Regulations,” which govern fund inflows and outflows.
Furthermore, the central bank pointed to a “structural shift” in the market, with USD-pegged stablecoins now being the preferred trading instrument over traditional crypto assets like Bitcoin and Ethereum. This shift is attributed to the notably lower price volatility of stablecoins. The SARB concluded that until an appropriate regulatory framework is established, the risks related to these types of assets present a threat to the financial system.
