South Africa Delays Retail CBDC Plans While Focus Shifts to Modernization of Payment Systems

South Africa has paused its plans for a retail Central Bank Digital Currency (CBDC). This decision prioritizes upgrades to existing payment systems, which the bank sees as offering immediate value. The central bank is now focusing on developing wholesale CBDC applications and improving cross-border payment efficiency, areas that are currently hindering progress in this domain. A recent assessment showed limited financial access and digital risks still pose significant barriers to retail CBDC adoption.