South Africa’s central bank has issued a warning about the rising adoption of cryptocurrency and stablecoins, highlighting the potential threat to financial stability in the country. The 2025 Financial Stability Review reveals nearly eight million South Africans have already adopted cryptocurrencies, with exchange-held assets exceeding $1.5 billion. USD-pegged stablecoins have overtaken bitcoin as the preferred trading pairs due to their lower volatility, driving this shift even further. Concerns arise from stablecoins’ borderless nature and how they could circumvent regulations on capital flow.
The bank emphasizes the urgent need for a robust regulatory framework addressing these risks associated with global stablecoins. Though the Financial Sector Conduct Authority (FSCA) has been licensing crypto companies under financial product rules since 2022, South Africa lacks comprehensive regulation for stablecoins, leaving space for hidden risks as cryptocurrency activity grows rapidly. The central bank is taking a cautious approach compared to other government agencies and is advocating for a unified national regulatory strategy to address these emerging threats.
Furthermore, the success of Altvest Capital’s $210 million Bitcoin investment highlights the growing interest in institutional crypto adoption in Africa. This firm’s focus on Bitcoin positions it as a pioneer in this space while also leveraging its assets during volatile economic situations. This example underscores how corporations are adapting their financial strategies to embrace the decentralized nature of Bitcoin and hedge against economic instability.
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