The Development of Cryptocurrencies as a Payment Method in South Africa

Authors

DOI:

https://doi.org/10.17159/1727-3781/2021/v24i0a9364

Keywords:

Cryptocurrency, bitcoin, payment systems, legal tender

Abstract

The use of currency as a medium of exchange for goods and services is essential in our daily lives. The concept of currency evolved from bartering to the use of coins and notes and now to the current digital age as the continuation of society's advancement has led to a new series of technological innovations with regard to payment methods around the world. Methods of payment are built on various platforms such as mobile phones, the internet, and digital storage cards. These payment systems have fostered the development and growth of fintech companies such as Paypal, Apple Pay, Samsung Pay, Alipay and others. The latest development is the use of blockchain to facilitate payments, more specifically the use of cryptocurrencies to facilitate transactions. The most popular cryptocurrency is bitcoin. Payments form part of commercial contracts which parties have a legal obligation to perform. South Africa has a legislative framework for payment systems wherein users have rights and obligations. This article will discuss the development of currency in South Africa and determine whether the current legislative framework for payment systems is applicable to cryptocurrencies such as bitcoin.

 

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References

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Malan F and Pretorius J “Credit Transfers in South African Law” 2007 Tydskrif vir Hedendaagse Romeins-Hollandse Reg 70.

McKinney R, Shao L, Rosenlieb D, Shao D “Counterfeiting in Cryptocurrency: An Emerging Problem” in Chuen K and Lee D (eds) Handbook of Digital Currency Bitcoin, Innovation, Financial Instruments, and Big Data (Academic Press London) 173‒188.

Mink J “The Rise of Bitcoin and other Cryptocurrencies” 2017 De Rebus 33‒35.

Mishkin F The Economics of Money, Banking, and Financial Markets (HarperCollins New York 1992).

Nian and Chuen “A Light Touch of Regulation for Virtual Currencies” in Chuen K and Lee D (eds) Handbook of Digital Currency Bitcoin, Innovation, Financial Instruments, and Big Data (Academic Press London) 309‒326.

Nian L and Chuen K “Introduction to Bitcoin” in Chuen K and Lee D (eds) Handbook of Digital Currency Bitcoin, Innovation, Financial Instruments, and Big Data (Academic Press London) 6‒30.

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Roestoff M “Payment Systems” in Sharrock R (ed) The Law of Banking and Payment in South Africa (Juta Cape Town 2016) 248‒317.

SARB Review of the National Payment System Act 78 of 1998 Policy paper (Government of South Africa Pretoria 2018).

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Published

2021-06-17

How to Cite

Hamukuaya, N. (2021). The Development of Cryptocurrencies as a Payment Method in South Africa. Potchefstroom Electronic Law Journal, 24, 1–23. https://doi.org/10.17159/1727-3781/2021/v24i0a9364

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Section

Articles