Sarb says South Africa needs faster, cheaper digital payments before launching a retail CBDC

SOUTH Africa should prioritise modernising its payment system to deliver faster, cheaper and more inclusive digital payments rather than rushing to introduce a retail central bank digital currency (CBDC).

- SIPHELELE DLUDLA

This is the advice by the South African Reserve Bank (Sarb) deputy governor Rashad Cassim who was speaking at the Gordon Institute of Business Science on Tuesday.

Cassim reiterated that the Sarb’s research had shown that a retail CBDC was technically feasible, but there was currently no compelling case for immediate implementation.

Instead, he said the Position Paper published in November 2025 ensured that the central banks focus is on building a payment system that works better for all South Africans.

“The compelling need is to modernise the payment system to give every South African fast, simple and secure digital payments,” he said.

Cassim said the Reserve Bank’s priority is the Payments Ecosystem Modernisation programme, which aims to upgrade the country’s payment infrastructure and create a safer, faster and cheaper system for households, informal traders and businesses.

He highlighted how payment systems, often described as the “plumbing” of the financial system, underpin economic activity by moving money between banks, companies and consumers.