Hot on the heels of AltVest becoming the first publicly-listed firm in Africa to add bitcoin to its treasury reserves, Farzam Ehsani, the CEO of VALR, the leading South African crypto exchange in volume and institutional investors, says emerging market institutions have a stronger imperative to adopt Bitcoin as a strategic reserve asset.
🇿🇦MILESTONE | Altvest Becomes First Publicly-Listed Firm in Africa to Add #Bitcoin to Treasury Reserves
Altvest says it ‘currently views Bitcoin as the only digital asset’ meeting its criteria.https://t.co/vx6CAuOwLM @CapitalAltvest pic.twitter.com/jydjwqeMF1
— BitKE (@BitcoinKE) February 23, 2025
According to Ehsani, institutions in the emerging market economies are experiencing more rapid depreciation of their local currencies.
“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.”
However, Ehsani recognizes that adopting Bitcoin as a reserve asset comes with challenges.
“The biggest hurdle is psychological,” he explained.
“Convincing a committee is far more difficult than persuading an individual, which is why institutions have been slower to enter the crypto space compared to retail investors.”
Bitcoin’s inherent volatility and the regulatory uncertainty surrounding cryptocurrencies remain significant hurdles for institutional adoption. Businesses must navigate complex accounting and risk management frameworks while addressing stakeholder concerns.
Despite these challenges, Ehsani sees Altvest’s decision as part of a broader trend. With currency depreciation affecting many South African and African companies, Bitcoin’s appeal as a strategic treasury asset is expected to grow, potentially reshaping the continent’s financial landscape.
Throughout its existence, Bitcoin has appreciated faster than all other asset classes, particularly the S&P 500 and gold, and that trend will continue in 2025, according to Galaxy Digital.
BITCOIN | #Bitcoin Could Hit 20% of Gold Market Cap in 2025, Says Latest Galaxy Report
Galaxy also predicted that total assets under management for U.S. spot Bitcoin exchange-traded funds (ETFs) launched in January 2024 will exceed $250 billion by 2025https://t.co/3atFNhST7M pic.twitter.com/A3yxnfpql5
— BitKE (@BitcoinKE) January 4, 2025
Bitcoin is also predicted to reach 20% of Gold’s market cap.
Ehsani reiterated that companies looking to hold cryptocurrencies in their reserves should focus solely on Bitcoin.
“If an institution has assets it can afford to hold long-term, Bitcoin is an obvious choice,” the VALR founder explained.
“Its impressive growth over the past 15 years and its potential for further appreciation make it a compelling reserve asset.”
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