IFWG of South African Governments Quotes That Cryptocurrency Cannot Be A Threat To Them

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IFWG of South African Governments Quotes That Cryptocurrency Cannot Be A Threat To Them Bitcoin adoption
  • South Africa’s Innovation Hub, Intergovernmental Fintech Working Group (IFWG) believed that crypto-assets cannot be a threat to the present monetary system in the country.
  • The position paper expressed that the South African Reserve Bank with the help of the country’s other governmental bodies raised their concerns about Cryptocurrencies and their lack of regulations in 2014 through a public conference.
  • the General Manager for Africa at Luno, Marius Reitz stated on the position paper that it offers ease to the banks, professionals, and consumers who will identify that the authorized crypto providers have come from a screening process.

South Africa’s Innovation Hub, Intergovernmental Fintech Working Group (IFWG) believed that crypto-assets cannot be a threat to the present monetary system in the country.

Crypto unlikely risk to the SA’s monetary system

The Group claimed so in a lengthy paper published on April 16, with the section titled “the risks of crypto assets.” This mentioned crypto as a possible but unlikely risk to the country’s monetary system in the current scenario.

The position paper expressed that the South African Reserve Bank with the help of the country’s other governmental bodies raised their concerns about Cryptocurrencies and their lack of regulations in 2014 through a public conference.

The South Africa Reserve Bank (SARB) has created IFWG to address the risks raised by Cryptocurrencies. It aims to boost the fintech innovation by helping to build a permissible regulatory environment and also, appraising the benefits and risk to accept a stable and responsible approach, the paper further detailed.

Increased crypto-asset demand will form an uneven monetary system

Massive demand for cryptocurrency will disrupt the monetary system of South Africa. However, the paper notified under its crypto-asset risk section that a substantial rise in the demand of crypto-asset would result in the formation of a parallel and fragmented monetary system.

In the meantime, the General Manager for Africa at Luno, Marius Reitz stated on the position paper that it offers ease to the banks, professionals, and consumers who will identify that the authorized crypto providers have come from a screening process. Also, he agreed that the regulation in the industry will bring transparency and reliability.

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