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Reserve Bank Governor Kganyago Rejects Bitcoin as Government Reserve Asset

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Reserve Bank governor Lesetja Kganyago

Reserve Bank Governor Lesetja Kganyago does not think bitcoin should be part of government reserves, like “gold or other important assets”.

Speaking at the World Economic Forum in Davos, Switzerland, he questioned the idea, saying, “Why don’t we hold reserves of beef, mutton, or apples? Why bitcoin?”


Kganyago warned governments to be cautious of lobbyists pushing specific products, like bitcoin, without considering whether they align with a government’s goals.

He compared the history and value of gold to bitcoin, suggesting that if bitcoin were included, why not other assets like platinum or coal?

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Reserve Bank governor Lesetja Kganyago, Speaking at the World Economic Forum in Davos

Some, like South African tech entrepreneur Stafford Masie, believes that bitcoin should be a strategic reserve. Masie, a strong supporter of bitcoin, disagreed with Kganyago’s comments, saying on social media that many political and business leaders in South Africa already support bitcoin. He called bitcoin supporters “orange-pilled,” a term for those strongly aligned with bitcoin’s ideas.


US President Donald Trump has also shown support for bitcoin as a strategic reserve in the United States. Brian Armstrong, CEO of cryptocurrency platform Coinbase, argued at the Davos panel that bitcoin is better than gold because it is scarce, portable, and easy to divide. Armstrong believes governments may start with a small percentage of their reserves in bitcoin, but over time, it could equal or surpass their gold holdings.


In South Africa, cryptocurrencies are seen as financial products under the Financial Advisory and Intermediary Services Act. However, there is no single law governing them, and they are not officially recognised as money – though this could change soon.


Tim Masela, head of the National Payments System at the Reserve Bank, said the Bank is researching how digital currencies could benefit the government and the public.


One idea is a central bank digital currency (CBDC), which could be programmed to work within specific rules. For example, money could be set to only buy necessities like bread and milk, not alcohol. Masela explained that the Reserve Bank wants to test and prove the value of such technologies before fully using them.


Kganyago remains doubtful about bitcoin’s suitability as a reserve asset, yet many advocates, both in South Africa and worldwide, continue to push for its adoption. At the same time, South Africa’s Reserve Bank is taking a cautious approach as it explores potential ways to incorporate digital currencies.

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