A Statutory Analysis of the Role of the South African Reserve Bank and Other Role-Players in the Promotion of Financial Inclusion Through the Regulation and Use of Central Bank Digital Currencies in South Africa
A Statutory Analysis of the Role of the South African Reserve Bank and Other Role-Players in the Promotion of Financial Inclusion Through the Regulation and Use of Central Bank Digital Currencies in South Africa

Summary/Abstract: Financial inclusion has emerged as a critical goal for policymakers in many countries, including South Africa. Notably, low-income earners are still underserved and excluded from accessing traditional banking services in South Africa. On the other hand, central bank digital currencies (CBDCs) provides innovative financial technology solution which could be utilised to promote financial inclusion through providing a secure, affordable and accessible payment solution. This article provides a statutory analysis of the role of the South African Reserve Bank (SARB) and other financial sector regulatory bodies and role players in promoting financial inclusion through the adoption and use of retail CBDCs in South Africa. Moreover, this article seeks to examine the current enforcement approaches and the duties of regulatory bodies and other role-players in the promotion of financial inclusion for low-income earners in South Africa. Furthermore, the role of the SARB, regulatory bodies and other role players involved in the promotion of financial inclusion through the use of retail CBDCs is investigated. Such regulatory bodies include the Financial Sector Conduct Authority, the Prudential Authority, the Financial Intelligence Centre, the National Credit Regulator, and the Independent Communication Authority of South Africa. Other role-players include the National Consumer Tribunal, the National Consumer Commission and the Banking Association of South Africa. This investigation is conducted to determine whether the statutory mandates of these regulatory bodies and role players enable them to support the adoption of retail CBDCs to curb the financial exclusion of low-income earners in the South African financial sector. This is done to recommend reforms that may be necessary should the SARB opt to adopt retail CBDCs following their feasibility study on the desirability of issuing a retail CBDC in South Africa.

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