Amid its work with the BRICS economic alliance, South Africa has announced ongoing research into stablecoin development in the country. Indeed, the national Intergovernmental Fintech Working Group is set to “conduct analytical work to understand the applicable use cases of stablecoins,” as well as issue regulatory recommendations.
The research and development is set to take place throughout 2024. Moreover, the group is also researching the potential impact of tokenization on domestic markets. Subsequently, the group is set to publish a paper that will explore the regulatory implications of the tokenization process by the end of the year.
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South Africa Announces Research into Stablecoins & Tokenization
For the last year, the BRICS economic alliance has dominated global discourse. Its de-dollarization plans and expansion efforts were some of the most important geopolitical developments of the last year. Moreover, they have only continued to develop their economic standing entering 2024.
Now, amid the work that BRICS has already done, South Africa has recently announced its first foray into stablecoin development in 2024. Indeed, the country identified a new regime that is set to research the asset class. Moreover, they will identify the implications of also featuring tokenization and its impact on financial market infrastructure.
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The announcement was part of the country’s robust 2024 budgetary report. Furthermore, the decision coincides with its enhanced position in the developing digital asset sector and its place in its growing economy. Last year the country began registering crypto asset service providers while stating crypto as a financial product.
The development of digital assets is nothing new to the BRICS bloc as a whole. China has experienced enormous success working in the sector with its digital yuan. Subsequently, it appears as though each country will take steps to reconcile with the important technological advancement that digital assets are, but in their own way.
Many have rumored that the plane BRICS currency could be built on blockchain technology. Making those developments crucial for participating economies. Subsequently, that work should be important to observe throughout this year.