South African Central Bank Governor said that cryptocurrencies are not eligible for currency

South African Reserve Bank (SARB) President Lesetja Kganyago opposed the classification of cryptocurrencies as currencies.

According to a report The central bank governor of MoneyWeb compared cryptocurrencies to assets rather than currencies in an interactive session of the Wits Business School Leadership Dialogue.

According to the governor of the South African Central Bank, cryptocurrencies only meet two of the three monetary standards, noting that:

“Cryptocurrency is a store of value. It is a medium of exchange, but it is not universally accepted. Only those who participate can accept it.”

Kganyago’s comment is a widespread criticism of Bitcoin by central bankers and other participants in the traditional financial system.Bitcoin) And cryptocurrency.

However, cryptocurrency is becoming more and more accepted as a payment method, especially in the retail market. El Salvador has also recently become the first country to adopt Bitcoin as legal tender, and this move can be replicated in other Central American countries.

Given the widespread adoption of cryptocurrencies, card payment networks such as Visa and Mastercard are also adding crypto payment options.

related: South African regulator issues new crypto investment warning

Commenting on SARB’s encryption mission, Kganyago stated that the central bank is seeking to regulate the encryption market to protect investors.The country’s encryption companies have previously warned that the lack of clear regulations is Harm the local cryptocurrency industry.

In fact, South Africa’s cryptocurrency sector is flooded with several fraudulent investment products that have stolen millions of dollars from unsuspecting victims.

Back in July, it was reported that the operator of South African encryption company AfriCrypt Absconding after the disappearance of $3.6 billion in Bitcoin From the company’s vault. Mirror Trading International, another The famous encrypted Ponzi scheme, Has attracted international attention, and the FBI Participate in the survey.

Kganyago also revealed that the central bank is very interested in blockchain and SARB is also experimenting with this new technology. As Cointelegraph previously reportedAs early as May, SARB began preliminary research on possible retail central bank digital currencies.