Payments Journal

Rand Vs. Dollar: South Africa’s Bet on a New Stablecoin

The episode examines South Africa’s launch of ZARU, a rand‑pegged stablecoin built on Solana by a consortium including Luno, Sanlam, EasyEquities and Lesaka. It explains how ZARU is backed by domestic assets like government bonds and is currently limited to institutional investors, aiming to make the rand more "internet‑native" and reduce reliance on the U.S. dollar for cross‑border trade. Analysts note that while ZARU could streamline local imports, exports and remittances, its appeal outside South Africa is doubtful due to limited liquidity and potential volatility, mirroring the struggles of euro‑backed stablecoins. The discussion highlights the broader de‑dollarisation trend but underscores the dominance of dollar‑pegged stablecoins, with 99% of the market still tied to the USD.