The changing face of money in the 21st century: Legal and regulatory implications for South Africa

Abstract

Historically, the concept of money was closely tied to material goods and sovereign fiat currency. However, advances in technology, societal values and global economic systems are all contributing to the increasing transformation of the concept of money. The 21st century has, therefore, seen the digitalisation of value through developments such as mobile-based financial solutions, cryptocurrencies and central bank digital currencies (CBDCs). These developments challenge long-standing legal definitions and regulatory standards of money, especially in jurisdictions such as South Africa, where socio-economic inequality and financial progress must coexist. This article examines the conceptual and historical underpinnings of money in order to determine if the legal definition of money has changed in response to this evolution. It examines the conventional understanding of money, the emergence of digital currencies, and the consequences for the South African legal system. The article finds that although new forms of money have been accepted, the basic idea of money has not altered much. It concludes by offering various legal and policy interventions to the South African authorities for possible implementation in their regulatory responses to the ever changing face of money.