South Africa’s Central Bank Warns of Rising Stablecoin Risks
South Africa’s Reserve Bank issued a formal warning on Nov. 25, 2025, flagging growing risks from digital assets and stablecoins as their use expands domestically and across borders. The bank highlighted vulnerabilities including weak backing, liquidity mismatches and the potential for rapid runs or contagion that could transmit stress to the broader financial system. The statement frames stablecoins not just as a consumer issue but as a macroprudential concern for monetary authorities.
The warning raises the likelihood of closer supervision and quicker regulatory action, with implications for exchanges, payment providers and remittance channels that rely on stablecoins. For market participants and users, that could mean higher compliance costs, tighter access controls and changes to product design. The Reserve Bank said it will continue to monitor developments and coordinate with other regulators to limit systemic spillovers.