But to the SARB governor's credit he’s not entirely wrong: Bitcoin’s wild gyrations in 2024 hardly inspire trust. Yet stablecoins, and these new BRICS tokens herald a digital overhaul of money onto safer ground that Kganyago’s caution may undervalue.

And I ask if we can afford not to be watching the latest developments with hawk eyes.

South Africa’s position demands scrutiny. Our massive external debt, with a large bulk of it in dollars, leaves us exposed. As every investor will tell you, "When America sneezes, the world catches a cold."

Trump and his tech geniuses are saying that stablecoins will herald a stronger dollar. How much will it affect the rand if stablecoins do what the US says it will. South Africa has gold reserves and, as of January 31, 2025, these were valued at $11.315bn, but this won't provide a big enough cushion to a much stronger dollar.

Sacks’ case for a digital reserve

Sacks, Trump’s crypto czar, has made a very strong case why the stakes are so high. At a February 4, 2025, press conference, he said: “Stablecoins have the potential to ensure American dollar dominance internationally to increase the usage of the US dollar digitally as the world’s reserve currency, and in the process create potentially trillions of dollars of demand for US Treasuries, which could lower long-term interest rates.”

Sacks also elaborated on CNBC’s "Closing Bell Over Time", “They are very committed to moving legislation through the House and the Senate this year in order to provide that clear regulatory framework that the digital assets ecosystem needs to sustain innovation in the United States. Moving legislation through Congress takes time, but I think this is something we could do in the next six months.”

The pace of this shift - legacy currency digitised - is alarming. His vision also ties digital adoption to global power, which signals an unprecedented disruptive reserve strategy.

He added at the press conference, “We want that value creation to happen in the United States rather than giving it away to other countries.” He continued, “This will also, I should add, be much better for consumer protection.”

In summary, South Africa is facing a monetary policy moment of reckoning. The grass is certainly not growing under the Trump administration’s feet, and we risk getting trampled on if we don’t move it.

This is a bit like watching the Springboks at the Rugby World Cup with their team all on the offensive. I am a very sporadic rugby watcher, but imagine how great it would be for our monetary policy team to get into the shoes of Cheslin Kolbe and Faf de Klerk and surprise on the upside.

Are we going to be on the field and agile for the new game in town?

However, I have my doubts. South Africa is too often one long talk shop that gets left behind through lack of implementation. But this is not something we can be inactive on. It is imperative that South Africa be proactive if we don’t want the rand and our economy to be on the back foot.

The SARB might consider forming a small brains trust, tapping innovators like Michael Jordaan, Charles Savage, and Luno SA’s Marius Reitz, to advise on this digital shift. (I am no crypto expert, so this is my uninformed list.) We need local experts to illuminate the path ahead. We cannot afford to be ostriches. And there is no need to be. South Africa is rich in tech-savvy experts. Please note this is not another bureaucratic committee but a strong business initiative with timelines to give our country a fighting chance in this digital new playing field.

To share a personal anecdote, last year, I didn’t want to fork out the money on a newish car—my priority was saving for my children’s education amid the high cost of living. So, I opted for financial prudence. I did a full service on my old Chev, and off I went, a single mum with two teenagers, bound for Durban and beyond. But 30 kilometers shy of Kokstad, the car broke down on the side of the road, which was not safe. Although we were okay and had an adventure of sorts, it was a very costly exercise that made me relook at my judgment-making.

Looking back, I realized that after Covid-19 and escalating costs, I am guilty of deprivation thinking - making do with what’s “good enough” -but that can backfire spectacularly. Thus, clinging to the old monetary chassis, much like I did with my car, might feel safe—until it’s not. Playing it too safe can endanger what you’re trying to protect.

The global economy is accelerating toward digital finance, and South Africa risks being left on the roadside, exposed to missed opportunities.

Sometimes, playing it safe isn’t prudent - it’s betting on the future that counts. Fortune favors the bold, and with South Africa’s coffers empty, we can’t afford to sit still.

#south-african-reserve-bank

Watch VideoEditor's Note: The case for rethinking South Africa's strategic reserves in a digital age

Editor's Note: The case for rethinking South Africa's strategic reserves in a digital age