The South African Reserve Bank (SARB) has released a new Position Paper and Background Note assessing whether South Africa needs a retail central bank digital currency. The documents, published in November 2025, conclude that while a CBDC is technically feasible, there is “no strong immediate need” for its introduction. The priority remains modernising the national payment ecosystem and broadening participation in digital payments.
SARB’s analysis draws on several years of research, technical trials and stakeholder engagement. The bank notes that a retail CBDC could support innovation, preserve public access to central bank money in an increasingly digital economy and complement existing payment instruments. However, the current evidence does not justify near-term implementation.
Payment infrastructure takes precedence
According to the Position Paper, ongoing initiatives such as the Payment Ecosystem Modernisation Programme and efforts to expand non-bank participation are more urgent for South Africa’s needs. These programmes aim to reduce cash dependency, increase financial inclusion and make digital payments more accessible and affordable. The documents highlight that despite declining cash use, physical money still plays an important role for many citizens.
The SARB warns that while digital payments are rising, the long-term decline of cash could eventually restrict public access to central bank money. This scenario is one reason the bank continues exploring CBDC options, even if implementation is not imminent.
Strategic shift toward wholesale CBDC
While shelving immediate plans for a retail CBDC, the SARB says the next phase of its digital currency work will focus on wholesale CBDC applications. This aligns with global trends, where central banks are prioritising interbank settlement innovation, cross-border efficiency and financial market resilience. The SARB plans to outline its wholesale CBDC roadmap in due course.
The decision positions South Africa alongside other emerging-market jurisdictions taking a cautious, infrastructure-first approach. Analysts say the SARB’s stance reflects a pragmatic assessment of local needs, ensuring the country remains prepared should future demand for a retail CBDC increase.