Some governments may in future enforce restrictions, tax implications, or bans on Bitcoin usage, warn experts.
As global economic pressures persist and digital innovation reshapes financial infrastructure, Bitcoin has emerged in South Africa not only as an investment asset but increasingly as a practical financial tool.
From individual savers hedging against currency uncertainty, to merchants processing every day payments and businesses experimenting with digital value rails, the landscape of Bitcoin adoption across the country is evolving rapidly.
This is according to a report by the Free Market Foundation (FMF), titled: “State-proof money: The case for Bitcoin adoption in South Africa”. The policy-oriented qualitative research paper combines legal analysis, economic theory, market data review and case-based evidence to assess Bitcoin’s role in the South African economy.
Authored by FMF CEO David Ansara, the report makes the case for individuals and companies to embrace Bitcoin as a strategic reserve asset and as a transactional currency.
Highlighted in the report for the African audience is the utility of Bitcoin for “state-proofing” − a strategy for building resilient, voluntary systems outside of government control to mitigate hostile policy and state failure. This has been a running theme in the FMF’s Liberty First policy agenda.
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The paper applies the state-proofing framework to money, arguing that Bitcoin adoption offers South Africans a powerful tool to reduce dependence on the rand and reclaim financial sovereignty.
Many South Africans now view Bitcoin not merely as a speculative crypto‑asset but as a hedge against inflation and currency weakness − a digital asset outside direct monetary policy and central bank control, notes the report.
Educators, analysts and civil liberties advocates have also contextualised Bitcoin as a tool for economic autonomy.
The Free Market Foundation frames Bitcoin as “state-proof money”, arguing that a decentralised monetary base enhances individual financial sovereignty in the face of inflationary state policies.
Speaking at the online launch of the report yesterday, Ansara explained: “Bitcoin is ‘freedom money’, and as an organisation that cares about promoting and defending freedom, we see great promise in Bitcoin.
“Its immutability and decentralised structure make Bitcoin ideal as a store of value and a hedge against monetary debasement. We’re excited to see more South Africans using Bitcoin to state-proof themselves.”
The paper identifies contemporary threats to sound money, including efforts to “nationalise” the South African Reserve Bank, the ever-present threat of inflation, as well as the risk of increased surveillance and government control over financial systems.
“State-proofing is a mindset. By internalising the locus of control and accepting their fundamental capability to be agents of change, ordinary South Africans can solve many of the problems facing our country today.”
The report’s publication comes ahead of the annual Adopting Bitcoin Conference, to be held in Cape Town on 30 January, where Ansara and industry pundits will address entrepreneurs, investors and civil society leaders from across Sub-Saharan Africa.
SA has been one of the most active crypto markets in Africa. While the crypto-currency is growing, it is still not accepted as a mainstream, universal form of payment.
According to central bank and exchange data, the user base across major platforms − Luno, VALR and Ovex − approached 7.8 million registered users as of mid-2025, holding roughly R25 billion in custody, the report states.
Independent industry figures place the number of South Africans owning crypto − primarily Bitcoin or stablecoins − at around 5.8 million to 6.3 million, roughly 9% to 10% of the population.
“This uptake reflects growing awareness, driven in part by macro-economic conditions: persistent inflationary pressures, rand volatility and concerns over fiat purchasing power have nudged households toward Bitcoin as a store of value.”
One of the most striking developments in SA’s Bitcoin story is the spread of real-time transactional use. Payment integrations, like scan-to-pay, have enabled Bitcoin payments at close to 40% of the country’s small and medium business ecosystem.
These integrations leverage the Bitcoin Lightning Network, which dramatically enhances transaction speed and reduces costs compared to on-chain payments: seconds instead of minutes, and fees often below a fraction of a rand. This infrastructural leap transforms BTC from a speculative holding into a feasible tool for groceries, fuel, hospitality and daily commerce, it says.
“This transition of Bitcoin from investment to transaction utility is a significant indicator of maturity. Where Bitcoin was once mostly a store of speculative value, it is increasingly being used as a medium of exchange in daily life − notwithstanding regulatory ambiguity and consumer education gaps,” says the FMF.
Experts have warned of key downsides of using Bitcoin, which include extreme price volatility, high transaction fees during network congestion, and the risk of permanent loss if private keys are misplaced.
Bitcoin’s value can change dramatically in short periods, making it a risky asset for holding or for daily transactions. Some governments may still enforce restrictions, tax implications, or bans on Bitcoin usage, warn experts.
