Strategic Beef Reserve or Strategic Bitcoin Reserve?

At the 2025 World Economic Forum in Davos, South Africa Reserve Bank (SARB) governor Lesetja Kganyago posed a thought-provoking question: “Why not strategic beef reserve?” Although meant sarcastically, it highlights Africa’s need to reassess its economic strategies amidst global financial transformations.

The Evolving Concept of Money

In today’s digitally transforming world, the concepts of money and value storage are rapidly evolving. Africa, rich in commodity-based economies relying on resources like oil, gold, beef, and cocoa, faces challenges due to global commodity price fluctuations driven by market dynamics, geopolitical tensions, and climate change.

For example, beef prices can dramatically shift due to disease outbreaks or trade restrictions, mirroring the unpredictable nature of fiat currencies in relation to digital assets like bitcoin. The Food and Agriculture Organization (FAO) notes beef price volatility can reach 30% year-over-year due to factors like disease and export bans.

The Case for Bitcoin

Coinbase CEO Brian Armstrong countered Kganyago’s remarks asserting that “Bitcoin is not just a better form of money than gold; it is also more portable, divisible, and utility-driven.” Over the past decade, Bitcoin has outperformed all major asset classes, reinforcing its status as a premier store of value. For Africa, establishing a Strategic Bitcoin Reserve could enhance economic independence, spur innovation, and foster long-term prosperity.

Comparatively, bitcoin’s digital nature eliminates the need for physical storage, unlike perishable commodities such as beef, which entail high maintenance costs. The World Bank estimates Africa incurs $48 billion in annual post-harvest losses, underscoring inefficiencies in commodity-based reserves. While commodities have intrinsic worth, they are limited to specific utility sectors. Conversely, bitcoin is a global, borderless asset suitable for varied applications in finance and technology. Its capped supply of 21 million coins adds to its deflationary nature, unlike fiat currencies or the perishable commodity sector.

According to CoinMarketCap, Bitcoin’s market capitalization surged from under $1 billion in 2013 to over $1 trillion by 2025, reflecting its rapid adoption and escalating value.

Why Bitcoin Over Beef?

Bitcoin allows for rapid cross-border transfers and can be subdivided into smaller units (satoshis), rendering it more practical than other reserve options like gold or beef. Historically, Bitcoin has delivered average annual returns exceeding 200%, surpassing gold, stocks, and real estate. A Fidelity Investments study confirms Bitcoin’s risk-adjusted returns outshine those of traditional assets.

Globally, nations are recognizing Bitcoin’s viability as a reserve asset. El Salvador made headlines in 2021 by adopting Bitcoin as legal tender, while countries like Switzerland and Singapore have incorporated bitcoin into their financial frameworks. As of 2025, the U.S. Strategic Bitcoin Reserve Bill is in the works, and Africa is also experiencing rapid cryptocurrency growth, led by Nigeria, Kenya, and South Africa.

Bitcoin’s deflationary characteristic offers protection against inflation, a challenge for many African economies, like Nigeria’s inflation hitting 34.80% in 2024, diminishing the Naira’s value. A Bitcoin reserve could safeguard national wealth against devaluation, with just 1% of the continent’s combined foreign reserves of 500 billion including 5 billion in Bitcoin potentially yielding significant returns.

Unlike beef production, which exacerbates deforestation and greenhouse gas emissions, Bitcoin mining can leverage renewable energy sources. The Cambridge Bitcoin Electricity Consumption Index states that 58.5% of global Bitcoin mining was powered by renewables as of 2021, and Africa’s ample solar and hydroelectric resources could facilitate sustainable Bitcoin mining operations. Additionally, storing and managing Bitcoin reserves is more cost-effective than maintaining commodity reserves, mitigating spoilage risks and complex logistics.

El Salvador’s Bitcoin adoption offers valuable lessons for Africa. Initially met with skepticism, Bitcoin has boosted tourism and foreign investment, with tourism revenue rising by 30% in the first year post-adoption, according to the Central Reserve Bank of El Salvador. Furthermore, Bitcoin has enabled millions without banking access to join the global economy.

Many African nations overly depend on the U.S. dollar for trade and reserves, leaving them vulnerable to external economic decisions, whereas Bitcoin provides a decentralized alternative, promoting financial autonomy.

By creating a Strategic Bitcoin Reserve, Africa can secure its economic future, shield its wealth from inflation, and establish itself as a leader in the global digital economy. Outdated economic models must evolve, and as Brian Armstrong aptly noted, Bitcoin isn’t just superior monetary form—it is the foundation of a new financial paradigm. For Africa, the clear choice is: Bitcoin, not beef, serves as the route to prosperity and represents a transformative asset class offering unmatched advantages over conventional commodities.

This is a guest post by Heritage Falodun. The opinions expressed are solely his own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Originally published on Bitcoin Magazine.