Vivienne Lawack, The Mandate and Role of Central Banks in the Fintech Era: The Case of the South African Reserve Bank and Central Bank Digital Currency, 42 Wis. Int'l L.J. 179 (2025).
Payments have evolved extensively over the years with the emergence of various technologies from electronic money, to mobile money and, with the ever-evolving financial technologies called “fintech,” payments now include crypto assets and central bank digital currency (CBDC). This article investigates the mandate and role of the South African Reserve Bank (SARB) and the regulatory conundrum posed by CBDC. The author illustrates this conundrum by examining CBDC from a policy and regulatory perspective, identifying challenges and risks to be mitigated before CBDC can be launched in a country such as South Africa. To this end, this article briefly provides an overview of the mandate and role of the SARB within the Twin Peaks regulatory model in South Africa. Furthermore, it deals with CBDC and identifies gaps within the current legal and regulatory framework that need to be addressed if South Africa were to adopt a wholesale or retail CBDC. Finally, the author examines whether the mandate and role of the SARB is appropriate or needs to adapt in view of fintech innovations such as CBDC.
