As South African firm Altvest Capital makes headlines as the first publicly traded company to adopt Bitcoin as a strategic reserve asset, industry experts are highlighting the growing appeal of cryptocurrencies in emerging markets facing persistent currency depreciation.

Farzam Ehsani, CEO and founder of VALR, one of South African’s leading cryptocurrency exchanges, argues that the drivers behind Altvest’s decision are universal but perhaps more urgent for institutions in economies like South Africa.

“The factors for this decision are no different from those considered by every institution globally. Perhaps there is a higher imperative for emerging market institutions to consider Bitcoin (BTC) as a strategic reserve asset, given the higher rate of depreciation of their currencies compared to more widely adopted fiat currencies.”

Many African currencies have depreciated in recent years including the South African rand has experienced volatility against major currencies like the U.S. dollar over the past three years. There are growing fears that this trend will likely continue in an era characterized by trade wars and protectionist policies. According to reports from the World Bank, several African nations have struggled with high inflation and currency instability, driven by factors such as fluctuating commodity prices, political uncertainty, and global economic pressures.

For example, a 2023 report from the International Monetary Fund (IMF) highlighted persistent inflationary pressures in several African economies, leading to a decline in the purchasing power of local currencies. The Nigerian naira has seen significant depreciation, exacerbating economic challenges. Additionally, the Egyptian pound has undergone several devaluations in response to economic reforms and external pressures.

These trends have prompted businesses to seek alternative stores of value, and BTC, with its decentralized and limited supply, is increasingly seen as a hedge against inflation and currency risk.

However, Ehsani acknowledges that the adoption of BTC as a reserve asset is not without its challenges. “The main challenge is a psychological one,” he explained. “It is harder to change the mind of a committee than it is to change the mind of an individual, and hence institutions are entering the domain of crypto assets later than retail.”

The inherent volatility of Bitcoin and the regulatory uncertainties surrounding cryptocurrencies also pose obstacles for institutional adoption. Companies must navigate complex accounting and risk management frameworks while addressing concerns from stakeholders.

Despite these challenges, Ehsani believes Altvest’s move signals a growing trend. As more South African and African companies grapple with currency depreciation, the appeal of Bitcoin as a strategic treasury asset is likely to intensify, potentially reshaping the financial landscape of the continent.

Meanwhile, Ehsani offered this thoughts on why companies keen on holding cryptocurrencies in their reserves should consider only BTC.

“Should an institution have assets that it can afford to hold over a longer period, Bitcoin is a natural asset to consider, given its remarkable appreciation over the last 15 years and its promise to appreciate even further into the future,” the VALR founder said.

Although South Africa is widely recognized as one of the top crypto markets in Africa, the Financial Action Task Force (FATF) decision to grey-list the country in early 2023 over concerns of money laundering involving crypto assets set the industry back. Ehsani, the inaugural chairperson of the South African Financial Blockchain Consortium, characterized the grey-listing as a “blemish” on the country that stakeholders are keen to have removed. To do this, South Africa, one of several African countries on the FATF’s grey-list, had to pass anti-money laundering laws and regulate the crypto industry.

For example, starting in late 2023, South Africa’s Financial Sector Conduct Authority (FSCA) began issuing licenses to crypto asset service providers, and by December 2024, about 248 such licenses had been issued. VALR was among the first exchanges to receive these licenses. Before licensing CASPs, South Africa had declared cryptocurrency a financial product to comply with FATF recommendations.

According to Ehsani, South Africa’s Financial Intelligence Unit (FIU) has also played a role in the drive to have the country removed from the grey-list.

“The Financial Intelligence Centre (FIC) has also boosted its role, with agencies using its data to tackle money laundering, addressing a key FATF action item. Legal updates have closed gaps noted by FATF in 2023, helping South Africa resolve 20 of 22 items by February 2025. For VALR, the FSCA’s CASP framework has been the standout change, embedding crypto in a regulated, formalized system,” the CEO explained.

Taking these and other steps appears to have yielded positive results, as the FATF commended the African nation at the end of its plenary meetings in France. Some South African media reports suggest that the country will likely be removed from the grey-list later this year. Should this happen, Ehsani believes it will help the country regain its prior position in the global financial system and recognition as “a jurisdiction with one of the top banking systems in the world and a strong emerging crypto ecosystem.”

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。