South African Reserve Bank Governor Lesetja Kganyago has raised concerns over the idea of governments holding specific assets, such as bitcoin, as part of their reserves.
Speaking at the World Economic Forum, Kganyago emphasized the need to understand the strategic intent behind such decisions.
"I would have a significant problem with a lobby that says government should hold this asset or hold that asset without [knowing] what the strategic intent of government is," Kganyago stated.
He acknowledged gold's historical role as a reserve asset but then questioned the logic of extending that role to assets like bitcoin, asking why not consider other types of assets.
"There is a history to gold. There was once a gold standard. Currencies were pegged to gold. But if we now say that, okay, bitcoins, okay, what about platinum? What about coal? Why don't we hold strategic beef reserves? Or mutton reserves? Or apple reserves? Why bitcoin?" he asked.
Kganyago further stressed that this issue is a matter of public policy requiring careful engagement.
"I would caution against the move; that would say there is an industry with a particular interest in a particular product. And we would like to impose it on society and say society must hold this as a reserve. I would have a fundamental problem with it," he added.