The South African Reserve Bank has officially classified cryptocurrencies and stablecoins as a potential threat to national financial stability, citing recent data that shows sharp growth in user adoption and custody balances. The warning comes in SARB’s latest Financial Stability Review published this week.
SARB placed digital assets under a new risk category titled “technology-enabled financial innovation,” but singled out crypto and stablecoins for immediate scrutiny. The bank noted that as of July 2025, there were approximately 7.8 million registered users on South Africa’s three largest exchanges, and by the end of 2024, combined assets held in custody reportedly exceeded R25 billion.
The rapid adoption of stablecoins has triggered particular concern. Since 2022, USD-pegged stablecoins have overtaken traditional cryptocurrencies like Bitcoin and Ethereum as the preferred trading pairs, largely due to stablecoins’ lower volatility. But SARB warns that stablecoins’ borderless, digital nature could allow substantial capital outflows, undermining exchange-control regulations and creating hidden systemic vulnerabilities.
In response to these developments, SARB and the national Treasury are reportedly preparing a regulatory framework to oversee crypto-asset service providers (CASPs), stablecoin issuers, and cross-border crypto transactions. They aim to close existing gaps and ensure the financial system is insulated from risks posed by emerging digital-asset markets.
For the South African crypto community and investors across Africa, this could mark a turning point: a recognition that crypto is no longer a fringe phenomenon, but a mainstream financial force capable of influencing macroeconomic stability. As SARB and regulators begin working on guardrails, the sector will have to adapt quickly or risk disruption.
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