A South African government working group will assess use cases and regulatory approaches for stablecoins in 2024.
The South African government is taking further steps to regulate cryptocurrencies and related assets in the country. According to a budget paper released on Wednesday by the National Treasury Department, the Intergovernmental Fintech Working Group will be looking into potential use cases and regulatory frameworks for stablecoins over the course of 2024.
Stablecoins are a type of cryptocurrency designed to have their value pegged to an external asset, like the U.S. dollar or gold. The working group will conduct analytical work to better understand how stablecoins could potentially be utilized in South Africa. They will also consider appropriate policies and regulations that could govern stablecoins.
Beyond stablecoins, the working group is also exploring the broader implications of tokenization. Tokenization refers to representing real-world assets like company stocks or commodities as digital tokens on a blockchain.
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