South Africa\u2019s central bank chooses to call digital currencies such as Bitcoin \u201ccyber-tokens\u201d because they don\u2019t meet the requirements to be classified as money.<\/p>\n
\u201cWe don\u2019t use the term \u2018cryptocurrency\u2019 because it doesn\u2019t 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,\u201d Reserve Bank Deputy Governor Francois Groepe told reporters in Pretoria on Thursday. \u201cWe prefer to use the word \u2018cyber-token\u2019.\u201d<\/p>\n
Digital currencies such as Bitcoin and Ethereum are becoming increasingly popular, with regulators in some countries struggling to move fast enough to manage them.<\/p>\n
The Reserve Bank has established a FinTech unit to review its position on private cryptocurrencies and to help draw up an appropriate policy framework and regulatory regime.<\/p>\n
\u201cWe want to ensure or establish whether there is still compliance with the relevant financial surveillance or exchange-control regulations,\u201d Groepe said.<\/p>\n
South Africa\u2019s Reserve Bank isn\u2019t the first to voice reservations about digital currencies. In January, Nigerian Governor Godwin Emefiele said investing in Bitcoin is a \u201cgamble\u201d.<\/p>\n
Bank for International Settlements General Manager Agustin Carstens said in an interview with the German newspaper Boersen-Zeitung this week he prefers to call these currencies \u201ccryptoassets\u201d.<\/p>\n