Due to their personal opinion that cryptocurrencies don’t meet what they feel are the ‘requirements’ of ‘money’, the South African Reserve Bank has decided to create their own (admittedly pretty cool) term, ‘Cyber-Token’.
Personally, I’m quite excited to go around asking retailers if they accept ‘Cyber-Tokens.’
Reserve Bank Deputy Governor Francois Groepe explains:
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’.”
Taking a step further than simply establishing themselves as the global body assigned to rename possibly one of the most important technological inventions since the wheel, The South African Reserve Bank has also established a fintech task force designed to review its position regarding cryptocurrency (sorry, cyber-tokens).
The task force will address regulatory issues and develop policy framework to establish “compliance with relevant surveillance or exchange-control regulations.”
They are not the first central bank to question the technology that may render them redundant, which is understandable. Earlier this year, Mark Carney, Governor of the Bank of England, declared that Bitcoin has “failed in traditional aspects of money“. Which is unsurprising since it has never made any attempts to be ‘traditional money’.
The South African Reserve Bank’s decision follows on the heels of the Reserve Bank of Zimbabwe’s legally-questionable attempt to stop all financial institutions serving Cyber-Token exchanges (previously known as cryptocurrency exchanges).
Outside of Africa, the Reserve Bank of India have also been in the news recently for their announcement that they will no longer provide services to individuals dealing in Cyber-Tokens.
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