Beyond Hype: How cryptocurrencies are reshaping everyday finance

IN recent years, cryptocurrencies have moved beyond the realm of speculative investment to become tools of practical utility, especially in a country like South Africa, where financial inclusion remains a pressing challenge.

From supermarket checkouts to cross-border remittances, digital assets are quietly embedding themselves into the fabric of daily economic life.

While many still associate crypto with volatile price swings and get-rich-quick narratives, its real-world applications are increasingly tangible.

In South Africa, consumers are using cryptocurrencies not only to hedge against the rand’s depreciation but also to make retail purchases — Pick n Pay’s 2022 adoption of Bitcoin via the Lightning Network being a notable example.

Beyond shopping, crypto facilitates remittances to neighbouring countries, enables peer-to-peer transactions for the unbanked, and unlocks access to decentralised finance (DeFi) platforms offering dollar-denominated yields.

Not all cryptocurrencies serve the same purpose. Bitcoin, the original and most widely recognised digital asset, is now viewed as both a store of value and a nascent payment method.

Ethereum, by contrast, powers smart contracts and underpins innovations like NFTs and DeFi, supported by a vibrant global developer community. Ripple (XRP) targets institutional use, offering rapid cross-border settlements that appeal to traditional banks.

Litecoin, once touted as “digital silver”, provides faster and cheaper transactions but has seen limited adoption. Meanwhile, stablecoins — digital tokens pegged to the US dollar — are gaining the fastest traction in South Africa, prized for their stability in remittances and as a bulwark against local currency volatility.

Pick n Pay’s move to accept Bitcoin marked a watershed moment, demonstrating that crypto integration into mainstream retail is technically feasible and commercially viable. Yet, despite its symbolic importance, everyday usage remains limited. Widespread adoption hinges on more retailers following suit, and on overcoming persistent barriers.

Several challenges continue to hinder broader acceptance. Price volatility makes assets like Bitcoin and Ethereum impractical for routine spending. Regulatory ambiguity, weak on- and off-ramps between crypto and fiat currency, and a legacy of scams have eroded consumer trust.

Additionally, user experience issues, such as high transaction fees on certain networks or complex wallet interfaces, discourage casual users.

At the heart of these digital currencies lies blockchain technology: a decentralised, tamper-proof ledger that records transactions transparently without intermediaries. In a South African context, where traditional banking can be exclusionary or costly, blockchain offers a compelling alternative, enabling secure, peer-to-peer value transfer with minimal infrastructure.

Compared to centralised financial systems, decentralised ledgers are more resilient (with no single point of failure), often cheaper to use, and inherently more inclusive. For millions of unbanked South Africans who own only a smartphone, this represents a pathway to financial participation previously out of reach.

Volatility remains crypto’s Achilles’ heel for daily transactions. When the value of your morning coffee could double or halve by lunchtime, spending becomes impractical. This is where stablecoins shine. Pegged to stable assets like the US dollar, they offer consistent purchasing power — ideal for remittances and everyday commerce.

However, they are not without risks. Questions linger around the transparency of stablecoin issuers, regulatory oversight by the South African Reserve Bank (SARB), and the ease of converting digital dollars back into rand, a process still hampered by liquidity and compliance hurdles.

Innovations like stablecoins and blockchain-based payment rails are laying the groundwork for a more efficient, accessible, and resilient financial ecosystem. They reduce transaction costs, accelerate cross-border flows, and extend services to those excluded from traditional banking — critical advantages in an economy grappling with inequality and currency instability.

For cryptocurrencies to become mainstream payment tools in South Africa and beyond, key barriers must be addressed: clearer regulation, improved rand integration, greater public education, and enhanced user security.

Yet the opportunities are equally compelling — particularly stablecoins for regional remittances, deeper retail adoption, crypto as a hedge against local currency weakness, and South Africa’s position within Africa’s rapidly expanding fintech landscape.

As the lines between digital and traditional finance continue to blur, one thing is clear: in South Africa, crypto is no longer just about speculation—it’s becoming a lifeline for financial inclusion and resilience.

* Sebaga Manyeula is a recognised Key Opinion Leader in Africa’s fintech and digital assets space. A passionate advocate for financial inclusion, she is also the founding patron of the Give to Live Foundation, which supports abused women and children across Africa.

** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media.

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