The Governor of the South African Reserve Bank (SARB), Lesetja Kganyago, has issued a strong warning about stablecoins. Speaking at the 2026 Warwick Economics Summit, he said that the rising popularity of stablecoins could be risky, and in some cases, these digital assets could “break apart.”
Stablecoins are digital tokens usually backed by assets like dollars, euros, or other reserves. They are designed to keep a fixed value, making them popular as a trading pair and a way to store value. But Kganyago highlighted that if these stablecoins fail or lose their peg, it could have serious consequences for financial systems.
The Reserve Bank has been cautious about digital assets for some time.
In its 2025 Financial Stability Report, SARB noted that crypto adoption in South Africa was growing quickly. By mid-2025, nearly 7.8 million users were active on the country’s three largest crypto exchanges, and trading in USD-pegged stablecoins surged because of their lower volatility.
Kganyago emphasized that stablecoins and other digital assets operate largely outside regulatory frameworks, which makes them harder for authorities to monitor. This lack of oversight could allow people to bypass exchange controls or move money across borders without proper reporting.
The central bank warned that without proper regulation, these assets could introduce hidden risks into the financial system.
While some regulators in South Africa, like the Financial Sector Conduct Authority (FSCA), have already classified certain crypto assets as financial products, SARB’s position shows that caution remains. The Governor stressed that central banks must protect the stability and affordability of money for the public, which stablecoins could threaten if not properly managed.
In summary, the warning signals that while stablecoins are popular and useful, regulators in emerging markets like South Africa are increasingly concerned about their potential impact on financial stability. Stronger rules and oversight may be needed to ensure these digital assets do not disrupt the broader economy.
Read also: Africa Stablecoin Summit 2026 Set to Shape Digital Finance
