Lesetja Kganyago, the South African Reserve Bank (SARB) governor, has argued against classifying crypto as currencies.
According to a report by MoneyWeb, the central bank chief likened crypto to assets rather than currency during an interactive session at the Wits Business School Leadership Dialogue.
According to South Africa’s central bank governor, cryptos only meet two of the three currency criteria, stating:
“A cryptocurrency is a store of value. It is a medium of exchange, but is not generally accepted. It’s only accepted by those who are participating in it.”
Kganyago’s comments are a common criticism leveled by central bankers and other actors in the legacy financial system against Bitcoin (BTC) and cryptocurrencies.
However, crypto is gaining greater acceptance as a payment means, especially in retail markets. El Salvador also recently became the first country to adopt Bitcoin as legal tender, a move that could be replicated among other Central American nations.
Card payment networks like Visa and Mastercard are also onboarding crypto payment options given