South African Central Bank Governor Warns Growing Use of Stablecoins Could Impact Monetary Unity

Odaily News South African Reserve Bank Governor Lesetja Kganyago has warned that the increasing popularity of stablecoins poses a risk of "fragmentation" for related crypto assets. Speaking at the 2026 Warwick Economic Summit, Kganyago stated that central banks have a responsibility to "safeguard the unity of currency and the affordability of public access to money," and the development of stablecoins could challenge this objective.

He pointed out that stablecoins, which are digital tokens typically backed by assets like U.S. Treasury bonds and designed to maintain a peg to fiat currency, have recently been increasingly used in South Africa as relatively low-volatility crypto asset tools. The South African Reserve Bank had previously warned in November 2025 that the lack of comprehensive regulation for stablecoins is becoming a new risk to the country's financial system.

Furthermore, Kganyago added that rising global uncertainty underscores the importance of central banks' diverse financial models, which is particularly crucial in the context of changes such as U.S. tariff increases. (Bloomberg)