Lesetja Kganyago, governor of the Due south African Reserve Banking concern (SARB), has argued against classifying crypto as currencies.

According to a report by MoneyWeb, the primal bank chief likened crypto to assets rather than currency during an interactive session at the Wits Concern School Leadership Dialogues.

According to South Africa'southward central bank governor, cryptocurrencies only meet two of the three currency criteria, stating:

"A cryptocurrency is a store of value. It is a medium of exchange, but is non generally accustomed. It'due south but accepted by those who are participating in it."

Kganyago'southward comments are a mutual criticism leveled by central bankers and other actors in the legacy financial organisation confronting Bitcoin (BTC) and cryptocurrencies.

Nevertheless, crypto is gaining greater acceptance as a payment means, especially in retail markets. Republic of el salvador besides recently became the first country to prefer Bitcoin every bit legal tender, a move that could be replicated among other Cardinal American nations.

Card payment networks such as Visa and Mastercard are too onboarding crypto payment options, given the widespread adoption of cryptocurrencies.

Related: S African regulators issue fresh crypto investment warning

Commenting on SARB'due south crypto mandate, Kganyago remarked that the central bank was looking to regulate the crypto market to protect investors. Crypto businesses in the country take previously warned that the lack of lucent regulations was harming the local cryptocurrency industry.

Indeed, the South African cryptocurrency scene has been rife with several fraudulent investment products that accept siphoned millions of dollars from unsuspecting victims.

Back in July, operators of South African crypto visitor AfriCrypt reportedly absconded following the disappearance of $3.6 billion in Bitcoin from the firm's coffers. Mirror Trading International, another well-known crypto Ponzi scheme, has attracted international attention, with the United States Federal Bureau of Investigation participating in the probe.

Kganyago as well revealed that the central depository financial institution was interested in blockchain and that SARB experimented with the novel technology. Every bit previously reported by Cointelegraph, SARB began the preliminary study of a possible retail central bank digital currency back in May.