,South African Central Bank denies to accept Crypto as digital currencies. Reserve bank of South Africa, the central bank of the Republic has announced not to call cryptocurrencies a currency and replaced the term with Token. The bank concluded that digital currency should be called cyber-tokens, because they don’t serve the purpose of money”.
Deputy Governor of the bank, Francois Groepe explained:
‘We don’t use the term “cryptocurrency” because it doesn’t meet the requirements of money in the economic sense of the stable means of exchange, a unit of measure and a stable unit of value. We prefer to use the word ‘cyber-token’’
South African Central Bank denies to accept Crypto as digital currencies
The bank has also establish a task force to address the regulatory issues and review its current stance to develop an appropriate policy framework.
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Problems faced by the “young crypto Industry”
The woes of the crypto community are countless with different regulatory authorities interpreting it differently and placing bans of their choice. The fault of digital currencies is that they are overwhelmingly performing at the exchanges. The top fiat currencies seems to be nowhere near the values carried by few of the digital assets. Conditions have been made worse for traders and exchanges to trade and operate any kind of transactions in digital currencies. Dozens of central banks have banned their subordinate institutions to stop working with anyone dealing in virtual currencies.
We can observe that these problems are mainly because there are lack of regulations to define the set of rules. Once the rules of the games are established, the things will surely be moving smoothly. The problem partly owes to the ‘young’ age of this newly-born industry. Whatever the scenario may be, you can’t deny the value of blockchain and smart contracts.
Similar kind of observations from other banks
We have seen similar kind of disapprovals from other top financial institutions of several countries. Earlier this year, the bank of England put a question mark on Bitcoin’s status of calling it a currency. It explained that it does not fall in the definition of currency. The reason is that it lacks two important requirements, it’s not a mean of exchange and it can’t store a value.
Earlier this month, the reserve bank of Zimbabwe drawn support from crypto currencies by saying that it can’t provide safeguard to crypto. Few of the other such cases are Indian and Pakistan’s Central banks decision to stop dealing with crypto traders and exchanges. However, Indian Supreme Court has held the decision.
The industry calls for regulations
There should be a level playing field for this industry. This way no one would be able to manipulate against it and harm its value. All the traders are worried about digital currencies. But we believe that after some regulations it will become stable again.The scope and trend is undeniable. Only in 2017, Bitcoin was the second most searched terms on the Google search engine. The time has come to accept its presence at every level and give it an environment where it could grow to its true potential.