Cryptocurrency doesn’t meet the requirements of money says Francois Groepe, Deputy Governor of South African Reserve bank. Mr. Groepe perceived cryptocurrencies as “Cyber Tokens”.
According to the Bloomberg’s reports on May 24th, 2018 the South Africa’s Central Bank pointed cryptocurrencies as ‘Cyber tokens’. Since, crypto doesn’t meet the requirements of money says Deputy Governor of Bank.
Francois Groepe is the Reserve Bank Deputy Governor, he explained the position of the bank:
“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’”.
Though, there is a rapid popularity in cryptocurrencies like Bitcoin and Ethereum, several countries are still struggling with regulators. Accordingly, the Reserve Bank has formed a self-regulatory organization and fintech developments to control cryptocurrency. It also helps to bring up a relevant policy framework and regulatory rules.
“We want to ensure or establish whether there is still compliance with the relevant financial surveillance or exchange-control regulations”.
However, it is proven that South African Reserve bank isn’t the first to raise voice about the cryptocurrencies.
Moreover, there are many central banks all over the word that have come up to cryptocurrencies with different angles of uncertainty and disapproval. In a month of February, 2018, Mark Carney, Bank of England’s chief made a sentence that ‘bitcoin failed as a currency by standards’.
Seeing the highest flexibility in a price of Bitcoin since December 2017, the UK’s Central Bank chief, Mark Carney proposes a controversial statement about Bitcoin. He says Bitcoin is not its niche as a currency by its standards, and also it’s not a store of value to buy things.
“It has pretty much failed thus far on … the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange”.
Recently, Financial institutions are required to stop crypto trading and transactions following an order by the Reserve Bank of Zimbabwe (RBZ). RBZ registrar of banking institutions, Norman Mataruka released a circular saying that the move will help to protect the public. And safeguard the integrity, safety, and soundness of the country’s financial system.
The circular reads:
“Financial regulators around the world have identified the dangers and risks presented by virtual currencies to financial stability which include risk of loss due to price volatility, theft or fraud, money laundering and other criminal activities. Further, cryptocurrencies can be in use to facilitate tax evasion as well as externalization of funds in violation of a country’s laws”.