The development of cryptocurrencies as a payment method in South Africa

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.