Some of the challenges highlighted in the statement that led to this include:
A lengthy processing period
Fraud perpetrated through the issuing of cheques
Cheques as an expensive payment instrument
The restricted acceptance of cheques
Limited education and protection for the consumer
Ageing interbank cheque processing infrastructure
Impact of the coronavirus pandemic (COVID-19) outbreak
According to SARB:
“In this regard, South African banks will not accept any cheques for deposit or encashment after 31 December 2020.
Banks are expected to extensively communicate with their clients leading up to and beyond the discontinuation of cheques. Furthermore, to educate their clients on alternative electronic payment methods that may be used.”
South Africa is one of the leading markets in Africa when it comes to the adoption and use of cryptocurrencies, and this regulation is one more nail to the traditional payments system coffin which continues to lose market share as digital payments take hold across the continent and the globe.