South Africa will study the political implications of using stablecoins

The South African Intergovernmental Working Group on Financial Technology has begun to analyze the use cases for stablecoins, as well as the associated policy implications.

South Africa's National Treasury has published comments on the country's 2024 budget, announcing an upcoming change in government policy regarding digital assets and stablecoin payments.

The Treasury's plan to promote digital payments adoption includes conducting an in-depth review of the use of stablecoins and blockchain technologies to “improve the lives and livelihoods of marginalized groups.”

The South African government has established a working group that will study the possible use of stablecoins in public finance management, as well as the impact of tokenization and blockchain on the traditional stock market and related sectors of the economy. The expert group is required to prepare its conclusion by December.

Earlier, the American cryptocurrency exchange Coinbase announced the expansion of its services in Africa through a partnership with the region's leading stablecoin exchange Yellow Card.