South Africa's intergovernmental fintech task force will study the use cases of stablecoins as well as their regulatory implications. The group is also exploring the impact of tokenization on the market and plans to publish a discussion paper on tokenization policy in December. South Africa's intergovernmental fintech task force will conduct analytical work on stablecoin use cases this year and consider appropriate policy and regulatory responses. The group is also considering the impact of tokenization on the domestic market. Like many countries, South Africa has been developing its policy on cryptocurrencies. Last year, the Financial Conduct Authority and the Financial Intelligence Center declared cryptocurrencies to be financial products and began registering crypto asset service providers. This year, the Treasury's budget document said the country will include stablecoins as a special type of cryptocurrency. Stablecoins are digital assets whose value is pegged to assets such as the US dollar. With presidential elections set for May 29, the ruling party's majority may be at risk, but it seems unlikely that government policy will change on cryptocurrencies.

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