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South African Reserve Bank (Sarb)\u00a0<\/span>Governor Lesetja Kganyago has warned about the risk of the increasing popularity of stablecoins, saying there is a danger the cryptocurrency assets could \u201cbreak apart\u201d.<\/p>\n Central banks need \u201cto protect the oneness of money and the affordability of money to the public\u201d, Kganyago said Saturday at the 2026 Warwick Economics Summit. \u201cThe truth of the matter is that these things could break apart,\u201d he said, in reference to stablecoins.<\/p>\n Read: Sarb warns of crypto, stablecoin risks amid regulatory gaps<\/p>\n The use of stablecoins \u2013 digital tokens backed by assets such as US Treasuries to maintain parity with traditional currencies \u2013 has risen sharply in South Africa as a less volatile form of cryptocurrency.<\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n The central bank warned in November that a lack of comprehensive regulations for the assets has emerged as a new risk to the country\u2019s financial sector.<\/p>\n<\/blockquote>\n Also, increased global uncertainty has underlined the importance of the various financial models used by the central bank, Kganyago said.<\/p>\n \u201cWe have got a suite of models,\u201d he said.<\/p>\n Given the imposition of US tariffs and other changes in the past year, \u201cthis became very, very important\u201d.<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Listen\/read:<\/p>\n European Central Bank (ECB) President Christine Lagarde on 5 February said the ECB is considering opening up repo lines for central banks outside Europe, which Kganyago said \u201cwould be a welcome development\u201d, Reuters reported, citing an interview on the sidelines of the summit.<\/p>\n Kganyago also said the country\u2019s interest rate-cutting cycle still has some way to go, Reuters reported.<\/p>\n \u00a9\u00a02026\u00a0Bloomberg<\/p>\n Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n\n
\nThe stablecoin gold rush is here<\/div>\n