South Africa Reserve Bank (Sarb) Governor’s question, “Why not strategic beef reserve?” At the 2025 World Economic Forum in Davos may have been rhetorical, but Lesetja Kganyago’s apparent sarcastic remark on “strategic bitcoinreserver” inadvertently emphasized the need for Africa to reconsider its economic strategies in the light of global economic shifts. In a world that is increasingly defined by digital transformation, the concept of money and value storage develops rapidly. Africa is no stranger to raw material -based economies. From oil to gold, beef to cocoa, the continent has long been dependent on natural resources to financial nutrition. However, these raw materials are filled with challenges. Global commodity prices are very susceptible to market fluctuations, geopolitical tensions and climate change. For example, the price of beef can fluctuate dramatically due to disease outbreaks or trade limits, just as the value of Fiat currencies swings and remains unpredictable when trading against digital assets such as Bitcoin due to regional economic policies and currency evaluation. According to Food and Agriculture Organization (FAO)At Beef prices have experienced volatility of up to 30% year-over years due to factors such as foot-and-mouth disease and export ban.
Image source: FAO
Although Brian Armstrong, CEO of Coinbase, answered Kganyago’s question with a compelling argument: Bitcoin is not only a better form of money than gold, it is also more portable, divisible and tool -driven. Over the past decade, Bitcoin has exceeded any major asset class and cemented its position as a superior value of value. For Africa, a continent often marginalized in the global financial system, a strategic Bitcoin reserve may be the key to unlocking economic independence, promoting innovation and ensuring long-term prosperity. How?
It’s time to be factual and realistic in our comparison. Bitcoin exists digitally and requires no physical storage, raw materials such as beef and mutton are perishable and expensive to maintain. The World Bank estimates that losses after harvest for agricultural products in Africa amount to $ 48 billion annually, highlighting the inefficiency of raw material -based reserves. While raw materials have their own value, their utility is limited to specific industries. Bitcoin, on the other hand, is a global, boundless asset with applications in financing, technology and beyond, while its unique properties make it an ideal candidate for a strategic reserve asset. With a uncovered supply of 21 million coins, Bitcoin is inherently deflationary as opposed to Fiat currencies that can be printed indefinitely or beef with endless reproductive mechanisms. According to CoinMarketcap, Bitcoin’s market value has grown from less than 1 billion in 2013 to over 1 trillion in 2025, demonstrating its rapid adoption and impairment.
Image source: CoinMarketcap
Why Bitcoin over beef?
Bitcoin can be transferred across borders in minutes and divided into smaller devices (satoshis), making it more practical than gold or beef. Over the past decade, Bitcoin has delivered an average annual return of over 200%that surpasses gold, shares and real estate. A study by Fidelity Investments found that Bitcoin’s risk -adjusted returns are superior to traditional assets, making it an attractive opportunity for prolonged wealth storage. Globally, nations begin to recognize Bitcoin’s potential as a reserve asset. El Salvador made history in 2021 by adopting Bitcoin as a legal bid, while countries such as Switzerland and Singapore have integrated Bitcoin into their financial systems. This is 2025 and the United States “Strategic Bitcoin Reserve” bill is already in pipeline. According to a 2023 report at Chainalysis, Africa is one of the fastest growing cryptocurrency markets where Nigeria, Kenya and South Africa lead to adoption.
Bitcoin’s deflationary nature makes it an effective hedge against inflation that has plagued many African economies. For example, Nigeria’s inflation rate hit 34.80% in 2024 and erodes the value of the Naira. A Bitcoin reserve could protect the national wealth from such devaluation. By allocating only 1% of its reserves to Bitcoin, Africa could unlock billions in value. For example, if the continent’s combined foreign reserves of $ 500 billion included 5 billion in Bitcoin, a 10x -deck in Bitcoin’s value would yield $ 50 billion in returns. Unlike beef production that 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 the global Bitcoin mining is run by renewable energy from 2021. Africa’s large solar and hydroelectric potential makes it an ideal place for Bitcoin mining. Storage and control of Bitcoin reserves is far more cost-effective than maintaining raw material reserves. There is no storage costs, no risk of destruction and no need for complex logistics.
Image source: Central Bank of Nigeria.
El Salvador’s adoption of Bitcoin as a legal bid provides valuable insight for Africa. Despite the first skepticism, Bitcoin has increased tourism and foreign investment in El Salvador. According to the Central Reserve Bank of El Salvador, tourism revenue increased by 30% in the first year after the Bitcoin adoption. Over 70% of Salvadorans lacked previous access to bank services. Bitcoin has enabled millions to participate in the global economy. By reducing the dependence on the US dollar, El Salvador has taken a bold step towards financial independence. Many African nations are very dependent on the US dollar for trade and reserves, leaving them vulnerable to external economic policies. Bitcoin offers a decentralized alternative that reduces the dependence on traditional financial systems.
By establishing a strategic Bitcoin Reserve, Africa can secure its economic future, protect its fortune from inflation and position himself 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 appropriately said, Bitcoin is not just a better form of money; That is the basis of a new economic paradigm. For Africa, the choice is clear: Bitcoin, not beef, is the way to prosperity. Bitcoin represents a transformative asset class that provides unmatched benefits over traditional ingredients such as beef or mutton.
This is a guest post of Heritage Falodun. Opinions that are expressed are entirely their own and do not necessarily reflect those from BTC Inc or Bitcoin magazine.