Crypto Does Not Qualify As Currency, Says South Africa’s Central Bank Governor

People, as well as businesses all over the world, are now recognizing crypto as a new currency type. But, still, there are people who don’t want the use of crypto. One such person is Lesetja Kganyago. He is the governor of the Reserve Bank of South Africa.

As per the recent news, governor Kganyago refused the classification of crypto as currency. The Central Bank chief was of the opinion that crypto is an asset rather than a currency. He gave this opinion when he was interacting at the Wits Business School leadership dialogue.

As per the governor, cryptocurrency does not meet two out of three criteria to be classified as a currency. The comments by Mr. Kganyago are common to the criticism by many central bankers against bitcoin and cryptocurrency.

Cryptocurrency is gaining acceptance all across the world as an important method of payment. It is gaining prominence in the retail market. Recently, El Salvador also became the first country to adopt Bitcoin as a legal tender. Thus, this move by El Salvador can also be replicated by many Central American nations.

As per a remark by Kganyago, the Central Bank was looking to regulate the crypto market so that the interest of investors could be protected. As per previous reports, the lack of clear regulations was harming the local crypto industry.

South Africa has also witnessed rife with different fraudulent investment products that have siphoned millions of dollars from investors,

In July, a South African crypto company named AfriCrypt was absconded after the disappearance of almost $3.6 billion in Bitcoin. The Mirror Trading international is another major crypto Ponzi scheme that has attracted international attention.

Although Mr. Kganyago is not too keen on the use of crypto, he was interested in blockchain technology. As per early reports, SARB had also experimented with the new blockchain technology.

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