South Africa Reserve Bank (SARB) governor, Lesetja Kganyago, posed an interesting question at the 2025 World Economic Forum in Davos, “Why not strategic beef reserve?” Although his statement may have been uttered in a tongue-in-cheek manner relating to “strategic bitcoin reserves,” it inadvertently highlighted the necessity for Africa to reassess its financial strategies in light of global economic changes. With the digital revolution reshaping the concept of money and value storage, Africa, known for its commodity-based economies, must adapt. However, commodities like oil, gold, beef, and cocoa come with their own set of challenges such as market volatility, geopolitical conflicts, and climate change. The Food and Agriculture Organization (FAO) points out that beef prices have seen an annual fluctuation of up to 30% due to issues like foot-and-mouth disease and export bans.
Image Credit: FAO
In response to Kganyago’s query, Brian Armstrong, CEO of Coinbase, asserted that Bitcoin is not only superior to gold as a form of money but also offers more advantages like portability, divisibility, and utility. Over the last ten years, Bitcoin has surpassed every significant asset class, establishing itself as an excellent store of value. For Africa, often sidelined in the global financial system, a Strategic Bitcoin Reserve could be the key to achieving financial independence, fostering innovation, and ensuring sustainable prosperity.
When comparing Bitcoin with commodities like beef and mutton, it’s essential to be factual and realistic. Bitcoin is digital and doesn’t require physical storage, while commodities are perishable and expensive to maintain. The World Bank estimates Africa’s post-harvest losses for agricultural products at $48 billion per year, highlighting the inefficiency of commodity-based reserves. Bitcoin, in contrast, is a global, borderless asset with applications in finance, technology, and more, making it an ideal candidate for a strategic reserve asset. With a limited supply of 21 million coins, Bitcoin is inherently deflationary. According to CoinMarketCap, Bitcoin’s market capitalization has grown from less than $1 billion in 2013 to over $1 trillion in 2025, indicating rapid adoption and value appreciation.
Image Credit: CoinMarketCap
WHY BITCOIN OVER BEEF ?
Bitcoin has several advantages over commodities like gold or beef. It can be transferred across borders within minutes and divided into smaller units (satoshis), making it more practical. Over the past decade, Bitcoin has delivered an average annual return of over 200%, outperforming gold, stocks, and real estate. A study by Fidelity Investments found that Bitcoin’s risk-adjusted returns are superior to traditional assets, making it an attractive option for long-term wealth preservation. Countries like El Salvador, Switzerland, and Singapore are recognizing Bitcoin’s potential as a reserve asset. The United States is even considering a “Strategic Bitcoin Reserve” Bill in 2025. According to a 2023 report by Chainalysis, Africa is one of the fastest-growing cryptocurrency markets, with Nigeria, Kenya, and South Africa leading in adoption.
Bitcoin’s deflationary nature makes it an effective hedge against inflation, which has troubled many African economies. For instance, Nigeria’s inflation rate hit 34.80% in 2024, decreasing the value of the Naira. A Bitcoin reserve could protect national wealth from such devaluation. By allocating just 1% of its reserves to Bitcoin, Africa could unlock billions in value. For instance, if the continent’s combined foreign reserves of $500 billion included $5 billion in Bitcoin, a 10x appreciation in Bitcoin’s value would yield $50 billion in returns. Unlike beef production, which contributes to deforestation and greenhouse gas emissions, Bitcoin mining can be powered by renewable energy. According to the Cambridge Bitcoin Electricity Consumption Index, 58.5% of global Bitcoin mining is powered by renewable energy as of 2021. Africa’s vast solar and hydroelectric potential makes it an ideal location for sustainable Bitcoin mining operations. Storing and managing Bitcoin reserves is far more cost-effective than maintaining commodity reserves. There are no storage costs, no risk of spoilage, and no need for complex logistics.
Image Credit: Central Bank of Nigeria.
El Salvador’s adoption of Bitcoin as legal tender offers valuable lessons for Africa. Despite initial skepticism, Bitcoin has enhanced tourism and foreign investment in El Salvador. The Central Reserve Bank of El Salvador reported a 30% increase in tourism revenue in the first year following Bitcoin adoption. Bitcoin has enabled millions to participate in the global economy, with over 70% of Salvadorans previously lacking access to banking services. By reducing reliance on the U.S. dollar, El Salvador has taken a bold step toward financial independence. Many African nations rely heavily on the U.S. dollar for trade and reserves, leaving them vulnerable to external economic policies. Bitcoin offers a decentralized alternative, reducing reliance on traditional financial systems.
By establishing a Strategic Bitcoin Reserve, Africa can secure its economic future, protect its wealth from inflation, and position itself as a global leader in the digital economy. The time has come for Africa to move beyond outdated economic models and embrace the future of money. As Brian Armstrong aptly stated, Bitcoin is not just a better form of money; it is the foundation of a new financial paradigm. For Africa, the choice is clear: Bitcoin, not beef, is the path to prosperity. Bitcoin represents a transformative asset class that offers unparalleled advantages over traditional commodities like beef or mutton.
This article is written by Heritage Falodun. The views expressed are their own and do not necessarily represent the views of BTC Inc or Bitcoin Magazine.
