Stablecoins Could Replace the South African Rand, Says Dawie Roodt
Economist Dawie Roodt says crypto stablecoins, especially those linked to the US dollar, could one day replace the South African rand.
Speaking at the 2026 Budget presentation, Roodt explained that stablecoins are gaining popularity worldwide, particularly as the United States moves to formally regulate them.
In the US, a new law called the GENIUS Act was signed in 2025. It creates clear rules for payment stablecoins—digital currencies that are tied to real money like the US dollar. These coins must be backed 100% by cash or safe government bonds, and only approved issuers are allowed to create them.
Because of this backing, stablecoins are far more stable than traditional cryptocurrencies like Bitcoin, whose prices can rise or fall sharply based on demand.
Why Stablecoins Are Different
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Stable value: Most stablecoins are pegged to the US dollar, meaning one coin is designed to always be worth $1.
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Lower volatility: Unlike other cryptocurrencies, stablecoins don’t swing wildly in price.
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Backed by real assets: Issuers hold real cash or government bonds for every coin issued.
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Lower transaction costs: Sending money with stablecoins is cheaper and faster than using traditional banking systems.
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Global reach: Money can be sent across borders quickly without relying on banks.
This makes stablecoins useful for everyday activities like paying salaries, buying groceries, or saving money.
Why the Rand Could Be at Risk
Roodt believes smaller and weaker currencies, like the rand, are especially vulnerable. If people can use a stable digital currency with:
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lower costs,
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better stability,
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and global acceptance,
they may stop using local currencies altogether.
“I won’t be surprised if smaller currencies are eventually pushed out by stablecoins,” Roodt said, calling it a major shift in how money works.
Bottom Line
Stablecoins backed by the US dollar could eventually replace local currencies such as the rand. With lower costs, global usability, and price stability, Roodt believes they represent a fundamental change in the future of money.
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