Crypto Corner: Slow growth in crypto payments is a good thing
Daily Maverick held a series of morning talks at the Hermanus Fynarts Festival in June. Business Maverick editor Neesa Moodley and I were on stage to discuss the future of money.
There was a pensioner who kept nodding off when the conversation turned to cryptocurrency and the role of bitcoin in an investment portfolio – and I can't blame her, as the conversation was being hijacked by a very crypto-clued-up commenter.
It's a common problem when you don't have any skin in the game. If she were paying for her weekly Pick n Pay groceries with crypto, she would have been more engaged. But that would mean fumbling at the till point with QR codes and payment apps.
As part of its Youth Month dataset, Binance reports that 54% of its user base in Africa is part of the Gen Z demographic. This checks out – Africa has a young population – but at the same time it seems a little low, especially when considering that the platform's growth rate in that age group since January 2023 is 107.6% globally.
The exchange also crossed the 275 million user threshold last month, with 9.1 million of those using Binance Pay identified in the youth segment, which is defined as being born between 1997 and 2012.
The caveat on this data is the many other exchanges and payment options available in the cryptoverse – but none of them, at least in Mzansi, is as elegant as tap-to-pay.
What was encouraging is the revelation that 56% of Gen Zers using Binance are low-volume traders, averaging between one and five trades per month. This tracks with the dual identity of crypto I told the Hermanus crowd about – and broke the snoozing senior from her slumber.
Because bitcoin has emerged as a viable store of value. Dabbling with trying to make a quick buck trading crypto is this generation's version of playing the stock market.
Although the marketing rhetoric will have you believe that the narcoleptic tannie sitting two rows from the stage has nothing in common with tech-savvy Gen Z, they both have similar money motivations.
They're also equally dismissive of crypto for day-to-day transactions because it isn't as convenient as the options already available. But they are also both beginning to see the benefit of savvy investing. DM
This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
9 hours ago
- Daily Maverick
SA's crypto regulations ‘deny investors access to best-performing asset of past decade', says Luno GM
Luno's general manager for Africa and Europe has harsh words for SA's financial regulators, saying that keeping pension funds out of exchange-traded funds is denying them billions of rands in liquidity. South Africa's crypto regulation debate has, at its centre, an ominous-sounding 'Board Notice 90'. No, it's not an order for Anakin Skywalker to go lightsabre-happy on younglings; it is an obscure piece of regulation that, in practice, keeps the country's most popular investment structures (pension funds) locked out of the global crypto boom. Finance Minister Enoch Godongwana insists that prohibition is necessary. When asked why in Parliament, he said cryptocurrencies were 'risky investments' and the rules were designed to protect 'unsophisticated investors.' But Marius Reitz, Luno's general manager for Africa and Europe, isn't buying it. 'It is becoming increasingly irresponsible for South African regulators and financial institutions to deny investors access to the best-performing asset of the past decade: bitcoin,' he said. The art of protection Reitz argues the minister's reasoning is inconsistent. Retail investors are already free to open an account with Binance, Luno or VALR and put their savings into bitcoin or ethereum directly. What they can't do is gain exposure through a Collective Investment Scheme (CIS) — the family of unit trusts, hedge funds and exchange-traded funds (ETFs) that anchor South African retirement and savings products. 'The surprising part,' said Reitz, 'is that unsophisticated investors are free to invest directly in crypto but are prevented from doing so via structured and professionally managed portfolios.' Globally, crypto ETFs have moved from niche to mainstream. In the United States, BlackRock's bitcoin ETF became the fastest fund in history to hit $70-billion under management. Local investors, meanwhile, can only watch from the sidelines. History casts a long shadow To understand how we got here, you have to go back more than six decades. South Africa's exchange control regime was created in 1961, in the aftermath of the Sharpeville massacre. Capital fled the country, and the apartheid government introduced sweeping controls to put a stop to this. Those regulations are still largely in place, despite the democratic transition. A 2020 Reserve Bank position paper even admitted that exchange controls 'do not govern the transfer of cryptocurrencies in and out of South Africa'. In practice, that means a regulatory vacuum. The vacuum was finally punctured in October 2022, when the Financial Sector Conduct Authority declared crypto assets to be 'financial products', forcing service providers to obtain licences. Two months later, Godongwana designated crypto-asset platforms as 'accountable institutions' under the Financial Intelligence Centre Act, subjecting them to anti-money laundering rules. Changing the game Then, in a landmark judgment in May 2025, Judge Mandlenkosi Motha ruled in the North Gauteng High Court that cryptocurrencies fell outside the 60-year-old exchange control framework. He called the regulations 'not fit for purpose' to deal with digital assets, adding bluntly: 'A regulatory framework addressing cryptocurrency is long overdue.' That ruling has forced the Reserve Bank into action. Godongwana has confirmed that a new crypto framework will be published later this year, setting out clear parameters for cross-border flows and the responsibilities of crypto platforms. The focus is on preventing illicit financial activity, not enabling local investment. It also followed the first of many bitcoin all-time highs. Hannes Wessels, Binance South Africa's general manager, told Daily Maverick, 'It reflects growing global confidence in digital assets, driven by strong institutional demand and regulatory progress. At Binance, we're proud to support this momentum and remain committed to accelerating crypto adoption worldwide.' What this means for you If the Reserve Bank tweaks the rules, especially by designating locally held crypto as 'onshore', it could open the door for South African ETFs and collective investment scheme (CIS) funds to include bitcoin. That would mean you could get exposure through the same structures that manage your retirement annuity or unit trust. Luno estimates that clearer rules could unlock billions in institutional capital and generate up to R500-million in extra tax revenue. That's not just good for investors, it's money for the fiscus too. Right now, the safest, most regulated investment vehicles in South Africa are shut out of crypto. If Board Notice 90 is amended, the average investor could finally get exposure to the digital asset class, but with the guardrails of professional management. Until then, it's DIY. Execute Board Notice 90 Reitz's real gripe is with Board Notice 90 of 2014. The document prescribes what assets CIS funds can hold. Crypto is explicitly excluded. For Reitz, that means South African pension funds and institutional investors are locked out of the world's fastest-growing asset class. But, to be fair to the lawmakers, bitcoin was only five years old. Between 2015 and 2025, bitcoin's value surged by around 37,000%, moving from about $430.57 to $119,448.49. Reitz argues that South African savers missed the bus, not because they were cautious, but because regulators decided on their behalf. 'A measured allocation to crypto assets could give ordinary investors a stake in the future of digital finance,' he said. Luno wants the Reserve Bank to go further still, by designating digital assets as 'onshore' when held with locally licensed platforms. That would clarify whether bitcoin ETFs count toward the strict foreign asset limits that keep institutional investors cautious. Reitz says such a move could unlock billions in liquidity and generate up to R500-million in extra tax revenue. The road ahead Godongwana has never explicitly opposed changing bitcoin regulations; he is just wary of rushing it. His rhetoric has consistently centred on protecting the integrity of the financial system. 'Trust is fundamental to any financial system's effectiveness and existence,' he told MPs. 'To counteract this, we must adopt a regulatory framework that is as dynamic and proactive as the financial sector itself.' But the clock is ticking. Other jurisdictions are already treating crypto as a legitimate asset class. South Africa's investors, many of whom already hold crypto directly, are left without the safeguards and efficiencies of professional management. For now, Godongwana's caution carries the day. But with each passing year, the cost of sitting on the sidelines grows. DM
IOL News
2 days ago
- IOL News
The Le Roux Question: Millions shape media, courts, democracy?
The Millennium Trust funds initiatives in media, law, civil society, and politics across South Africa, supporting organisations such as Daily Maverick, amaBhungane, CASAC, Freedom Under Law, and Judges Matter. | These grantees are said to operate with full editorial and organisational independence, but the Trust's influence is said to be exercised indirectly through advocacy, investigative work, and legal reform efforts, rather than through direct control. | The Trust provides financial support to the Democratic Alliance Image: Sizwe Dlamini ECONOMIST Dr Séan Mfundza Muller has issued a stark warning about the growing power of South Africa's ultra-wealthy, spotlighting Michiel le Roux, co-founder of Capitec Bank, and his alleged behind-the-scenes influence on media, politics, and civil society through strategic funding, raising questions about accountability, transparency, and the integrity of democratic institutions. Speaking on Ntsiki Mazwai's Moya podcast, Muller said: 'Another South African billionaire, who I think is very interesting, is Michiel le Roux, who is one of the people behind Capitec. Now, as far as I know — and I heard this both from a private source and then I also came across a public source of this information — Le Roux is behind a trust called the Millennium Trust.' Muller explained that, according to his research and private discussions, the Millennium Trust, which was founded around 2010, supports a 'constellation of powerful voices in civil society', noting: 'The Millennium Trust funds the Daily Maverick, amaBungane, the Council for the Advancement of the South African Constitution (Casac), Freedom Under Law, as far as I know … and I'm going from memory here.' He further said that the trust operated with a certain degree of opacity: 'But so you've got all these civil society organisations, all these media outlets being funded by this … trust. I mean, I've gone to look at the directors. You would never guess from the directors of this trust. You would not be able to find out who's behind it.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Muller described how he discovered the connection: 'I only found out because I stumbled across something online and because somebody who had direct knowledge … told me privately that Le Roux is behind this.' When reached for comments, the Millennium Trust said they would get the appropriate person to respond to questions from the Sunday Independent, but had not got back to us by the time of compiling this report. Attempts to get comments from Le Roux drew a blank. Regarding potential implications, Muller raised concerns about editorial independence and transparency, saying: 'While these funds support critical journalistic and civic activities, concerns persist about their impact on editorial independence. Newsrooms such as the Daily Maverick and amaBhungane maintain that funding does not dictate editorial control, yet the exact terms and amounts often lack full public disclosure, raising questions about transparency in media financing.' He also spoke about Le Roux's financial support to South Africa's main opposition party, the DA: 'Michiel le Roux funds the DA … so he also funds their court cases. He funds the civil society organisations that apply to the court to be friends of the court in court cases. And he funds the media houses that report on all of that.' Muller posed a rhetorical question on the ramifications for public understanding: 'Okay, now, how do you think as an ordinary person, you're going to be able to get accurate information on, for example, who's corrupt and who's not, who's good and who's bad?' He noted that Le Roux's donations reportedly exceeded R50 million between 2021 and 2023 through private companies such as Fynbos Ekwiteit and Fynbos Kapitaal, making him among the largest disclosed donors to the DA within that timeframe. Muller also commented on broader patterns of philanthropic influence: 'This is just one billionaire. When they control three, right, and those are just the ones we know about, right, that's not even like particularly covert. As soon as you know who's funding the trust, you can figure that out loud, right? There's a whole lot of other stuff that we know less about, what we have to find out about through private sources … like who's funding Rivonia Circle … which is another thing which I've raised over the last couple of years.' Reflecting on new civic movements and political projects, Muller observed: 'Rivonia Circle was really the platform that Songezo Zibi used to start Rise Mzansi, which eventually we discovered was funded by the Oppenheimers.'
Daily Maverick
5 days ago
- Daily Maverick
The cost of convenience — how delivery services are disrupting SA's cities
As the on-demand delivery economy grows in cities all over South Africa, residents and shop owners complain of chaos, drivers face risks and companies scramble to manage the fallout. On any day in cities across the country, motorcycles idle outside malls and restaurants as the riders wait for the next delivery to ping on their phones. It's a scene that has become as familiar as Table Mountain in Cape Town or the Union Buildings in Pretoria. What began with Checkers Sixty60 has evolved into a fully-fledged ecosystem of instant convenience as Mr D, Uber, Pick n Pay asap!, Woolies Dash and others race to deliver everything from milk to sushi. But for landlords, restaurant owners and the drivers themselves, the cost of this convenience is becoming harder to ignore. From suburb to staging ground Using Cape Town as an example, Daily Maverick found that frustration was boiling over in Claremont in the southern suburbs. A landlord at Intaba, a residential complex near the Cavendish Square shopping centre and popular restaurants and cafés, said the surrounding streets had turned into a motorbike holding The Claremont resident, who chose to remain anonymous, told Daily Maverick how he had seen drivers sleep on pavements, urinate in alleyways, park on red lines on dangerous corners and rev their bikes outside the apartment windows. The area was turning into a 'slum', he said. He claimed that his properties' values had plummeted and blamed delivery platforms like Mr D and Uber Eats for their poor driver oversight, saying he had found it difficult to reach staff higher up in the companies to complain. In the city bowl, a Kloof Street restaurant owner, who also wanted to remain anonymous, shared similar concerns. Since 2017, he said, he had watched drivers cluster around the building, blocking entrances, urinating in the street and stealing products from his premises. He eventually banned them from entering his shop. His landlord also erected a fence on one side of the property to prevent drivers from parking close to the restaurants or sitting on window sills. 'Our cities aren't built for this,' he said. Drivers caught in the middle For delivery drivers themselves, life on two wheels is far from easy. A Mr D driver, who spoke to Daily Maverick on condition of anonymity, said he worked from 7am to 10pm most days, commuting from outside the city to come to work, then spending his days waiting outside restaurants to maximise his chances of getting orders to deliver. There were no designated rest areas, the driver said, and bathroom access depended on restaurants' goodwill. Theft was a constant risk while waiting at the roadside, he added. A report by Alicia Fortuin, a researcher at the African Centre for Cities at the University of Cape Town, highlights that most delivery drivers have to buy their own bikes, often second-hand and through informal forums or WhatsApp groups. 'There is also little evidence of new fintech services in asset finance offering insurance designed to target the riders themselves,' the report reads. 'Motorcycle delivery platforms have taken an asset-light approach.' Commonly, drivers are classified as independent contractors. This gives them flexibility, but also strips them of protections, benefits and structured support. Changes are coming To their credit, Cape Town's major delivery players are not pretending the problems do not exist. Takealot Group, which owns Mr D, said it was working with the City of Cape Town to test the value of having dedicated parking bays in high-traffic areas. 'This pilot project is a first in South Africa and will be rolled out to the rest of the country,' the company said. Takealot also runs a driver development programme that includes training, rest areas and feedback tools. It said it had received 'isolated escalation cases' and identified the drivers, who then underwent consultation and retraining. Drivers, the company said, enjoyed full autonomy. 'Throughout the day drivers are released using a first-in, first-out priority system – those who have offered services the longest are released first during cash-up procedures.' Pick n Pay echoed similar sentiments. Asap! drivers managed their own schedules and were advised to rest after four hours, with a daily cap of eight working hours, it said. 'Drivers have access to facilities at the centre they operate from,' the retailer added. It added that it was aware of concerns raised by residents and was reviewing how best to address them. Checkers said most of its stores had sheltered waiting areas for Sixty60 drivers, depending on the shopping centres' approval. Woolworths, which operates Woolies Dash, said it rented dedicated mall parking spots and was testing ways to improve the driver experience. Dash drivers, too, are considered independent contractors. Uber Eats offered fewer specifics, but said its community guidelines applied to all users. In 2024, it introduced hourly caps – 12 hours on the road, followed by mandatory rest. What it means for everyone Streets are getting busier and motorists need to keep a sharp eye out for delivery bikes whizzing all around them; Convenience comes with trade-offs. Faster delivery means more pressure on public space, hygiene and safety in neighbourhoods; Many drivers buy their own bikes, lack formal protections and work long hours; Infrastructure such as parking bays are only now being tested – after the system has already scaled up significantly; and Customers have power. How you tip, review drivers and speak up about conditions matter. Your voice can draw attention to issues. Standards and feedback Most of these companies offer training to their drivers. Mr D runs operational briefings, Pick n Pay uses onboarding centres and Woolworths requires compliance 'in line with Woolies values'. Each platform offers complaint channels. Driver feedback systems are also becoming more formalised. Uber hosts roundtable discussions and in-app support for drivers. Woolworths and Pick n Pay run regular feedback sessions. Checkers uses surveys and messaging apps. The on-demand economy is very profitable. Woolies Dash grew 71.2% in 2024. Checkers Sixty60 online sales grew almost 60% in the same year. Mr D's total sales volume jumped 16%. It seems this success is coming at the cost of communities losing peace and patience, drivers shouldering risk in terms of crime, traffic and keeping their bikes running, and cities absorbing infrastructure strains. DM This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
