At the 2025 World Economic Forum in Davos, “Why not strategic beef reserve?” was a question posed by the governor of the South Africa Reserve Bank (SARB), Lesetja Kganyago. While it may have been rhetorical, his following comment about “strategic bitcoin reserves” highlighted a crucial issue: Africa must reassess its economic strategies amidst shifting global finances. In today’s rapidly digitalizing world, our notions of money and value storage are undergoing significant change. Africa’s economy, traditionally dependent on commodities—ranging from oil and gold to beef and cocoa—faces numerous challenges. The prices of these commodities are often volatile, influenced by market dynamics, geopolitical tensions, and climate shifts. For example, beef prices can fluctuate sharply due to outbreaks of disease or trade barriers, mirroring the unpredictable nature of fiat currencies when compared with digital assets like bitcoin, which are affected by local financial policies and currency depreciation. The Food and Agriculture Organization (FAO) notes that beef prices have varied by as much as 30% year-on-year due to factors such as foot-and-mouth disease and export bans.
Image Source : FAO
In response, Brian Armstrong, CEO of Coinbase, made a persuasive case that Bitcoin isn’t just a superior form of currency compared to gold; it’s also more portable, divisible, and utility-driven. Over the past decade, Bitcoin has consistently outperformed other major asset classes, solidifying its role as a more reliable store of value. For Africa—often on the outskirts of the global financial system—a Strategic Bitcoin Reserve may unlock new avenues for economic independence, innovation, and sustained prosperity. But how?
A realistic comparison is essential. Bitcoin is a digital currency requiring no physical storage, while commodities like beef and mutton are perishable and expensive to store. According to the World Bank, Africa faces post-harvest losses in agriculture of about $48 billion each year, underscoring the inefficiencies in commodity-based reserves. Although commodities possess intrinsic value, their utility is confined to specific sectors. Conversely, Bitcoin is a universal, borderless asset with applications extending into finance and technology, making it a promising candidate for a strategic reserve. With a maximum supply of 21 million coins, Bitcoin is inherently deflationary, unlike fiat currencies that can be printed endlessly or beef, which has robust reproductive capabilities. CoinMarketCap reports that Bitcoin’s market capitalization soared from under $1 billion in 2013 to over $1 trillion by 2025, reflecting its rapid acceptance and value growth.
Image Source : CoinMarketCap
WHY BITCOIN OVER BEEF?
Bitcoin facilitates cross-border transactions within minutes and can be divided into smaller fractions (satoshis), making it more practical than traditional commodities like gold or beef. With an average annual return exceeding 200% over the last decade, Bitcoin has surpassed gold, stocks, and real estate in performance. Research from Fidelity Investments indicates that Bitcoin offers superior risk-adjusted returns compared to conventional assets. Countries worldwide are starting to acknowledge Bitcoin as a reserve asset, such as El Salvador, which notably adopted it as legal tender in 2021. Countries like Switzerland and Singapore are also integrating Bitcoin into their financial systems. Fast forward to 2025, and the United States has even proposed a “Strategic Bitcoin Reserve” Bill. A Chainalysis report from 2023 highlights Africa as one of the quickest-growing cryptocurrency markets, with Nigeria, Kenya, and South Africa leading the charge.
Given its deflationary nature, Bitcoin acts as a solid shield against inflation, a prevalent issue in many African economies. For instance, Nigeria experienced an inflation rate of 34.80% in 2024, diminishing the value of the Naira. A Bitcoin reserve could serve to safeguard national wealth from such depreciation. Investing just 1% of its reserves into Bitcoin, Africa could potentially unlock billions in value. If the continent’s collective foreign reserves of $500 billion included $5 billion in Bitcoin, a tenfold increase in Bitcoin’s value could result in $50 billion in returns. Furthermore, unlike beef production—which contributes to deforestation and greenhouse gas emissions—Bitcoin mining can utilize renewable energy. As per the Cambridge Bitcoin Electricity Consumption Index, 58.5% of Bitcoin mining globally was powered by renewable sources as of 2021, and Africa’s abundant solar and hydroelectric resources make it an ideal site for sustainable Bitcoin mining initiatives. Managing Bitcoin reserves is considerably more cost-effective than maintaining physical commodity reserves, eliminating storage costs, spoilage risks, and complex logistics.
Image Source : Central Bank of Nigeria.
El Salvador’s experience with Bitcoin as legal tender can offer valuable lessons for African nations. Despite some initial doubts, Bitcoin has positively impacted tourism and foreign investment in El Salvador. According to the Central Reserve Bank of El Salvador, the nation saw a 30% surge in tourism revenue in the year following Bitcoin’s adoption. Previously, over 70% of Salvadorans had no access to banking services, but Bitcoin has allowed millions to engage in the global economy. By decreasing its dependency on the U.S. dollar, El Salvador has made significant strides toward financial autonomy—a move that many African nations, heavily reliant on the dollar for trade and reserves, should consider. Bitcoin can provide a decentralized alternative, minimizing reliance on traditional financial systems.
By creating a Strategic Bitcoin Reserve, Africa can secure its financial future, shield its wealth from inflation, and assert itself as a leader in the digital economy. The time has arrived for Africa to transcend outdated economic frameworks and embrace the future of finance. As Brian Armstrong succinctly put it, Bitcoin is not just an improved form of currency; it represents the foundation of a new financial paradigm. For Africa, the choice is evident: Bitcoin, not beef, is the route to sustainable prosperity, standing as a transformative asset class that offers unmatched benefits over conventional commodities like beef or mutton.
This is a guest post by Heritage Falodun. The opinions expressed are solely those of the author and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.
