Question from the Governor of South Africa (SARB); “Why not a strategic beef sanctuary?” Though it may have been rhetorical at the 2025 World Economic Forum in Davos, Resegja Kuganyago's seemingly ironic remarks about “strategic Bitcoin reserves” have inadvertently emphasized the need for Africa to rethink its economic strategy in the face of global financial changes. In a world increasingly defined by digital transformation, the concept of money and value storage is evolving rapidly. Africa is familiar with a product-based economy. From oil to gold, beef, and cocoa, the continent has long relied on natural resources for economic nutrition. However, these products have challenges. Global commodity prices are extremely sensitive to market fluctuations, geopolitical tensions and climate change. For example, beef prices can be dramatically shaken due to disease outbreaks and trade restrictions. This remains unpredictable when traded with digital assets like Bitcoin due to the way the value of Fiat currency is shaking and local monetary policy and currency devaluation. According to Food and Agriculture Organization (FAO), Beef prices have experienced up to 30% volatility compared to the previous year due to factors such as foot and mouth disease and export bans.
Image source: FAO
Coinbase CEO Brian Armstrong answered the question Kganyago with a compelling argument, but Bitcoin is not a better form of money than gold, it is also portable, splittable and utility-driven. Over the past decade, Bitcoin has surpassed all major asset classes and has solidified its position as a highly valued storage. For Africa, a continent that is often marginalized by the global financial system, strategic Bitcoin reserves could be key to unlocking economic independence, promoting innovation and ensuring long-term prosperity. how?
It's a time when we are factual and realistic in our comparisons. Bitcoin exists digitally and does not require physical storage. Products such as beef and mutton are prone to rot and are expensive to maintain. The World Bank estimates that post-harvest losses of African agricultural products reach $48 billion a year, highlighting the inefficiency of commodity-based reserves. While products have intrinsic value, their usefulness is limited to certain industries. Bitcoin, meanwhile, is a global, borderless asset with applications such as finance, technology, and its unique properties make it an ideal candidate for strategic reserve assets. With 21 million coins being supplied, Bitcoin is essentially deflationary. It can print Fiat currency that can be printed indefinitely, or beef with an infinite reproductive mechanism. According to Coinmarketcap, Bitcoin's market capitalization has risen from under 1 billion in 2013 to over 1 trillion in 2025, indicating rapid adoption and value ratings.
Image source: coinmarketcap
Why are you putting Bitcoin on beef?
Bitcoin can travel across borders in a few minutes and be divided into small units (atoshis), making it more practical than gold or beef. Over the past decade, Bitcoin has generated an average annual revenue of over 200%, surpassing gold, stocks and real estate. A study by Fidelity Investments found that risk-adjusted returns for Bitcoin are better than traditional assets, making them an attractive option for long-term wealth preservation. Globally, nations are beginning to recognize the potential of Bitcoin as a reserve asset. El Salvador made history in 2021 by adopting Bitcoin as its fiat currency, but countries like Switzerland and Singapore have integrated Bitcoin into their financial system. This is 2025, and the US “Strategic Bitcoin Reserve” bill is already in the pipeline. According to a 2023 report by Chain Orisis, Africa is one of the fastest growing cryptocurrency markets, with Nigeria, Kenya and South Africa leading adoption.
The nature of Bitcoin's deflation has become an effective hedge against inflation that has plagued many African economies. For example, Nigeria's inflation rate reached 34.80% in 2024, eroding the value of Naira. Bitcoin Reserves can protect the wealth of its citizens from such devaluation. By allocating just 1% of its reserves to Bitcoin, Africa was able to unlock billions of value. For example, if the total foreign reserves on a continent of 500 billion continents contain 5 billion Bitcoin, a valuation of 10 times the value of Bitcoin would bring about $50 billion in profits. Unlike deforestation and beef production, which contributes to greenhouse gas emissions, Bitcoin mining can be driven by renewable energy. According to the Cambridge Bitcoin Power Consumption Index, 58.5% of Bitcoin mining worldwide is powered by 2021 renewable energy. Africa's vast solar and hydroelectric potential makes it an ideal location for sustainable Bitcoin mining operations. Storage and management of Bitcoin Reserves is much more cost-effective than maintaining a merchandise reserve. No storage costs, no risk of corruption, no complex logistics needed.
Image source: Central Bank of Nigeria.
The adoption of Bitcoin as a legal currency by El Salvador provides valuable insights for Africa. Despite initial skepticism, Bitcoin has boosted tourism and foreign investment in El Salvador. Tourism revenue rose 30% in the first year since Bitcoin adoption, according to El Salvador's Central Reserve Bank. More than 70% of Salvadorans previously lacked access to banking services. Bitcoin has enabled millions of people to participate in the global economy. El Salvador took a bold step towards economic independence by reducing its dependence on the US dollar. Many African countries rely heavily on the US dollar for trade and reserves, and are vulnerable to external economic policies. Bitcoin offers a decentralized alternative and reduces reliance on the traditional financial system.
Establishing a strategic Bitcoin Reserve will enable Africa to secure its economic future, protect its wealth from inflation, and establish itself as a global leader in the digital economy. It's time for Africa to move beyond the outdated economic model and embrace the future of money. As Brian Armstrong appropriately stated, Bitcoin is more than just a better form of money. It is the foundation of a new financial paradigm. For Africa, choices are clear. Bitcoin, not beef, is the path to prosperity. Bitcoin represents a transformative asset class that offers unparalleled benefits over traditional commodities such as beef and mutton.
This is a guest post by Heritage Falodun. The opinions expressed are entirely unique and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
