South African Reserve Bank Governor Warns of Stablecoin Risks

South African Reserve Bank Governor Lesetja Kganyago has issued a warning about the potential risks associated with the increasing use of stablecoins. According to Odaily, Kganyago highlighted these concerns during the 2026 Warwick Economic Summit, emphasizing the central bank's responsibility to maintain the unity of currency and ensure its affordability for the public. He noted that the development of stablecoins could pose a challenge to these objectives. Kganyago explained that stablecoins, typically backed by assets like U.S. Treasury bonds and designed to maintain a peg with fiat currencies, are being increasingly used in South Africa as a relatively low-volatility crypto asset tool. The South African Reserve Bank had previously warned in November 2025 that the lack of comprehensive regulation for stablecoins was emerging as a new risk to the country's financial system. Furthermore, Kganyago pointed out that rising global uncertainties underscore the importance of central banks employing various financial models, especially in the context of changes such as increased tariffs in the United States.