As 2025 unfolds, Africa continues to navigate the evolving crypto landscape, proving to be more than a bystander. The continent has emerged as an active participant in shaping the global cryptocurrency narrative. Key developments this week spotlight South Africa’s skepticism toward Bitcoin as a strategic reserve asset, Kenya’s regulatory strides, and Ethiopia’s growing prominence in crypto mining.
South Africa: Reserve Bank Governor Questions Bitcoin as a Strategic Asset
The Governor of the South African Reserve Bank, Lesetja Kganyago, voiced strong criticism against the notion of promoting Bitcoin as a strategic reserve asset. Speaking at the World Economic Forum in Davos, Kganyago questioned the cryptocurrency’s intrinsic value.
“Why Bitcoin? Why not beef, mutton, or apples?” Kganyago asked, emphasizing that Bitcoin lacks the tangible value associated with traditional assets like gold. He warned of the dangers of “regulatory capture,” where policies could be skewed to benefit specific industries or players.
In contrast, Coinbase CEO Brian Armstrong has called on governments to accumulate Bitcoin as a strategic reserve. Highlighting Bitcoin’s scarcity and ease of transfer, Armstrong argued that it surpasses gold as a store of value, positioning it as a viable asset for national reserves.
Kenya: New Crypto Regulations on the Horizon
Kenya is making significant moves to regulate the crypto sector. The country’s draft Virtual Asset Service Providers (VASP) bill remains open for public comment as of Friday, January 25, signaling the government’s intent to bring clarity to the previously unregulated crypto space.
The proposed legislation outlines requirements for crypto firms seeking to operate within Kenya. These firms will be required to open local offices and appoint Kenyan CEOs and executives, subject to approval by regulatory bodies like the Capital Markets Authority (CMA).
Although crypto trading and holding are not illegal in Kenya, the bill aims to provide a structured framework for the industry, creating a more predictable business environment for crypto-related activities.
Ethiopia: A New Frontier for Crypto Mining
Ethiopia has emerged as a global leader in cryptocurrency mining, leveraging its abundant renewable energy resources. The East African nation has attracted miners displaced from China and Mongolia, becoming one of the largest contributors to Bitcoin’s global hash rate after the United States.
This week, Abu Dhabi-based Phoenix Group announced a partnership with Data7 to launch a new mining farm in Ethiopia. The farm will utilize 80 MW of renewable energy to mine Bitcoin. Although the financial details and location of the facility remain undisclosed, the move underscores Ethiopia’s growing appeal in the crypto mining sector.
Munaf Ali, CEO of Phoenix Group, highlighted the strategic significance of their expansion:
“We are aggressively building out our mining capabilities … we are not just expanding our operations … we are strategically positioning ourselves at the forefront of a financial revolution where cryptocurrencies will play a central role in creating a more inclusive and dynamic global economy.”
Phoenix Group also operates a major crypto mining farm in North Dakota, indicating its ambition to strengthen its position as a leader in the crypto mining industry.
