Will SA’s Reserve Bank give Facebook’s digital currency the nod?
The Bank is looking into policies and regulations for cryptocurrencies
Facebook’s new blockchain-based digital currency will likely win Reserve Bank approval because it will be backed by bank deposits and government bonds as assets, analysts say.
Regulators around the world have been cautious about cryptocurrencies because of their decentralised nature and volatility in the price of bitcoin, which has gone to a high of R255,000 and low of R45,000 in the past two years. Cryptocurrencies have also faced allegations of fraud and cybersecurity risk.