Thursday, June 20, 2019

South Africa Considers Adding Cryptocurrency to its National Payment System

South Africa wants to update its National Payment System (NPS) as the use of digital technologies are trending globally. There are expectations that some of these may include cryptocurrency and Blockchain technology. An update to the bill governing the NPS is a decision that will be collectively taken by South Africa’s Reserve Bank (SARB) and the National Treasury.

South Africa, the Most Advanced Country in Africa

South Africa has been said to be the most advanced country in Africa when it comes to the adoption of Blockchain technology and cryptocurrency. The country has been relying on its NPS bill which was passed in 1998. Since then, significant changes have not been made until recently where there was a need to.

The need for improvement can be attributed to the fact that the NPS is outdated. As such, updates have to be made to meet the trends in technology. A better financial system for processing payments may bring about faster and more efficient transactions. The new system will help citizens as well as legal entities to transfer money swiftly. It will also aid in the security and traceability of transactions.

Regulators May Set up Laws Governing the Use of Cryptocurrency

The trading of virtual currencies is unregulated in South Africa. This leaves customers, and the market unprotected. Crypto enthusiasts on this note, are expecting that regulations will be drawn up for the use of cryptocurrency in the country. If this happens, then it might also be one of the payment methods users can take advantage of.

However, this is left for the Regulators, SARB and the National Treasury to decide. They have also sought the counsel of interested parties to know the next course of action. The next step would be to make legislative proposals to change the infrastructure of the country’s financial system.

Cryptocurrency is Gradually Gaining Acceptance Around the World

More countries are either accepting cryptocurrency or adopting Blockchain technology. In the case of the former, a State in the US, Ohio began accepting the digital asset for tax payment. It is one of the first states in the US to accept a cryptocurrency officially, and there are hopes that this will encourage other states to do the same

Other countries where a virtual currency can be traded for a good or service can be attributed to the efforts of private companies. In Venezuela for instance, KFC has decided to accept Dash cryptocurrency which means, people can buy food in over 24 locations in the country with the coin.

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