Leave Bitcoin Reserve Debate To Rich Countries: Michael Jordaan

The bitcoin strategic reserve lobby has grown louder following successful trials in El Salvador and the election of Donald Trump as US president, who promised he is going to be the "crypto president".

Speaking to VALR CEO Farzam Ehsani in a podcast on Monday, Jordaan said South Africa's biggest challenge is growing the economy so that jobs are created and poverty is alleviated - outcomes he believes are better served by "real" investments in the economy instead of financial instruments that only have the "potential" for growth.

"I would say the debate is not a South African debate I think it's one for the wealthy countries who feel that they don't have those opportunities to make the economy grow," Jordaan, co-founder and chairman of Bank Zero and a former CEO of First National Bank, told Ehsani.

The South African Reserve Bank defines its strategic reserve as a "collection of assets that are managed to help the country prepare for economic crises, natural disaster and conflict". These assets include gold, foreign exchange, 'special drawing rights" and forex deposits.

"In a country like South Africa, I wonder whether we should be investing in reserves or whether we should be investing in the economy, in real assets and in education and things that make the country grow," said Jordaan.