• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
Advertisement
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

South Africa Pension Funds To Exclude Non-CBDC Crypto Assets

November 1, 2021
in Crypto News
Reading Time: 2 mins read
A A
0
South Africa Pension Funds To Exclude Non-CBDC Crypto Assets
0
SHARES
8
VIEWS
ShareShareShareShareShare

The South African government has announced that it is testing Central Bank Digital Currencies (CBDCs) to facilitate cross-border payments. The decision is seen to give a boost to financial institutions across the world to incorporate CBDCs and begin using the technology. 

South Africa Restricts Non-CBDC Crypto 

The South African government, in an effort to push its CBDCs, has introduced legislation that restricts non-CBDC crypto from being invested in pension funds. The new regulations are in sharp contrast to the older regulations that allowed portfolio managers to invest around 2.5% of funds into the category of “other assets,” which also included crypto assets. The new rules, however, exclude cryptocurrencies, citing a lack of protection.

The Fairfax County Police Officers Retirement System in the USA allows crypto assets to constitute a portion of the members’ money. Initially, the fund allowed 0.5% allocation in a fund investing in blockchain-related companies. Today, that figure stands at 7%. 

Regulatory Concerns 

South African regulators have repeatedly raised concerns regarding the volatility and speculative nature of cryptocurrencies. They have also flagged the lack of protection for investors. However, the government and regulators are exploring the use cases of distributed ledger technology. The regulators have cited Regulation 28 as it protects investors from investing too much in a single asset class. 

Defining A Digital Asset 

The South African Government has described digital assets as a digital representation of value that does not originate from a central bank. However, they recognize the ability for the asset to be traded, transferred, and stored electronically by legal citizens through the use of cryptography and distributed ledger technology. 

Is Crypto A Good Asset Class 

According to Simeon Ellis from XPS Pensions Group, four criteria can be used to evaluate if cryptocurrencies such as Bitcoin are a good investment opportunity and should be utilized in pension funds. The criteria are as follows     

  • Is bitcoin a store of value?
  • Is it a source of interest?
  • Is it an expected source of capital growth?
  • Is bitcoin a risk hedge

Project Dunbar 

Earlier this month, the Basel-based Bank for International Settlements (BIS) announced that it is heading a project in collaboration with the central banks of Australia, South Africa, Singapore, and Malaysia to test the use of Central Bank Digital Currencies (CBDCs) for international payments. 

The initiative, also known as Project Dunbar, will focus on developing platforms for the use of CBDCs for cross-border transactions. This would enable financial institutions to transact directly with each other using the central bank digital currencies issued by the central banks of each country, thereby eliminating the need for intermediaries, reducing transaction costs and the time taken to complete transactions. 

“After years of mostly domestic research and exploration, we are very pleased to see that these common insights about the need to explore cross-border CBDC payments and interoperability are coming together internationally.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Was The Smart Money Right About Merck (MRK)?

Next Post

Retail Is Here, They’re Just Buying Shiba Inu (SHIB) Instead of Bitcoin

Related Posts

Metacade Announces Breakthrough Collaboration with Polygon Labs
Crypto News

Metacade Announces Breakthrough Collaboration with Polygon Labs

October 4, 2023
2
SOL Exploded by 25% Weekly, Here are the Key Targets (Solana Price Analysis)
Crypto News

SOL Exploded by 25% Weekly, Here are the Key Targets (Solana Price Analysis)

October 3, 2023
5
Polkadot & Composable announced as Diamond Sponsor at the Cosmoverse’23 conference in Istanbul
Crypto News

Polkadot & Composable announced as Diamond Sponsor at the Cosmoverse’23 conference in Istanbul

October 3, 2023
4
Embattled crypto lender Celsius wants to start repaying customers by year-end
Crypto News

Embattled crypto lender Celsius wants to start repaying customers by year-end

October 3, 2023
6
Is presale sensation Memeinator the meme cryptocurrency to never miss in 2023?
Crypto News

Is presale sensation Memeinator the meme cryptocurrency to never miss in 2023?

October 3, 2023
6
Next Post
Retail Is Here, They’re Just Buying Shiba Inu (SHIB) Instead of Bitcoin

Retail Is Here, They're Just Buying Shiba Inu (SHIB) Instead of Bitcoin

Recommended

How Bitcoin Spark Emerges as a Stronger Mining Alternative to Ethereum

How Bitcoin Spark Emerges as a Stronger Mining Alternative to Ethereum

September 10, 2023
9
Market Analysts Make SHIB Predictions after Shibarium Upgrade

Shiba Inu Millionaire Dream: How Much SHIB to Invest for a $1 Million Haul?

September 13, 2023
7
Hedera (HBAR) and Emirates Telecom Giant Join Forces

Hedera (HBAR) and Emirates Telecom Giant Join Forces

September 14, 2023
6
Front Runing Scam Bots on Youtube Marked 6-Fold Increase in 2022: Report

Kraken User Falls Victim to $4.5M USDT Loss in Phishing Scam

September 22, 2023
7
St. Louis Region’s Rail-Accessible Sites Expand with Infrastructure Investment

St. Louis Region’s Rail-Accessible Sites Expand with Infrastructure Investment

September 21, 2023
4
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Metacade Announces Breakthrough Collaboration with Polygon Labs
  • SOL Exploded by 25% Weekly, Here are the Key Targets (Solana Price Analysis)
  • July 2023 Sees U.S. Narrow Fabric Import Decline by 3% to $99M

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?