Should South Africa Hold Bitcoin as a Strategic Reserve? | Ft. Michael Jordaan, CEO of Montegray & Former FNB CEO
The VALR Podcast is back for its second season! Beginning with a discussion between host Farzam Ehsani and Michael Jordaan, CEO of Montegray, one of South Africa’s most influential entrepreneurs, and former CEO of FNB. As the first investor in VALR, Jordaan has played a crucial role in the progress of crypto assets in the country. This episode focuses on traditional finance, cryptocurrency, and innovation.
Bitcoin, Banking, and the Future of Finance
Michael Jordaan has supported technological advancement in the financial sector for years. His involvement with Bitcoin began in 2014 when he first recognised its potential. Reflecting on those early days, Jordaan remarked, “I wish I’d held on to all the Bitcoin I bought in 2014.”
With traditional financial institutions now addressing the reality of digital assets, Jordaan believes that within the next decade, no bank will be able to overlook cryptocurrencies. He sees Bitcoin as a global and borderless asset that questions conventional banking structures and will require the industry to adapt.
Bitcoin as a Corporate Treasury Asset
With companies like MicroStrategy heavily investing in Bitcoin, corporate treasury strategies are shifting. Jordaan shared his thoughts on the matter, emphasising a more conservative approach.
“If companies do have reserves and no debt, diversification makes sense - including Bitcoin,” he stated. While he personally prioritises debt reduction, he acknowledged that Bitcoin’s potential as a long-term asset is clear.
The Role of Crypto in South Africa’s Economic Future
Jordaan highlighted the importance of investing in South Africa’s real economy rather than speculative reserves. Instead of building a Bitcoin strategic reserve, he argued that South Africa’s focus should be on property ownership reforms and education to support economic growth.
“We have the capabilities to grow at 5%,” he said. “We just need to take some tough but necessary decisions.”
Blockchain’s Role in Fighting Corruption
As an advocate for transparency, Jordaan sees blockchain as a tool to combat corruption. By using decentralised technology, governments can make financial transactions more auditable, creating accountability.
“Sunlight is the best policeman,” he remarked, emphasising that blockchain’s transparency could improve governance and financial integrity.
AI, Crypto, and the Future of Commerce
Looking ahead, Jordaan discussed the potential of AI and crypto working together, where microtransactions and automated payments could change commerce. He believes the next phase of change will come from the integration of AI-powered financial services with decentralised systems.
Closing Thoughts
As South Africa and the world adjust to financial changes, Jordaan remains optimistic about the future. His advice? Stay informed, keep an open mind to innovation, and surround yourself with people who challenge you.
“The world is changing fast. Those who embrace change, rather than resist it, will thrive.”
The second season of The VALR Podcast will feature more discussions with industry leaders in South Africa and across the globe. Stay tuned for more engaging conversations!
Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate.
VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
