The treasury plans were revealed by South Africa in the annual budget to promote the adoption of digital payments. This includes analyzing blockchain and stablecoins to “improve the lives and livelihoods of marginalized groups.”
The nation's budget assessment for 2024 emphasized the necessity of structural changes and an emphasis on enhancing public financial management. A nearing policy change on cryptocurrencies particularly for stablecoins was announced by the Treasury while detailing its plan to encourage digital payments.
“In 2024, the Intergovernmental Fintech Working Group will publish additions to include “stablecoins” as a particular type of crypto asset.”
In June 2021 a crypto regulation paper was published by the working group which will be modified to include stablecoins in the crypto asset class in addition to finalizing a diagnostic of the domestic stablecoin landscape.
According to the report:
“ It will conduct analytical work to understand the applicable use cases of stablecoins and to recommend an appropriate policy and regulatory response.”
According to a report, the government of South Africa will also run a three-year program in association with Switzerland's State Secretariat for Economic Affairs and FinMark Trust to carry out four pilot projects for digital payments.
The four pilot projects consist of digitizing informal and low-income worker payments, community digitalization, cross-border remittances, and cross-border trade.
The goal of the initiative is to use innovative payment methods to promote small and informal companies.
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