Position Paper on Virtual Currencies- A South African Example

This document outlines the position of the South African Reserve Bank on virtual currencies as it relates to their mandate and responsibilities. The document consists of five sections, i.e. the first three sections provide background, clarify concepts pertinent to the virtual currency discussion and draw a distinction between various categories of virtual currencies. The document further highlights several immediate risks associated with the current virtual currency landscape, in particular the decentralised convertible virtual currencies, and concludes with the Bank‟s position and responsibility in this regard as well as a caution to users of virtual currencies.