Catenaa, Thursday, January 23, 2025 – South Africa’s central bank governor Lesetja Kganyago criticized cryptocurrency lobbying efforts at the World Economic Forum, warning they pose risks of “regulatory capture” and undermine balanced financial governance.
The World Economic Forum opened its Annual Meeting, gathering nearly 3,000 leaders from over 130 countries to discuss global challenges. The meeting that started Monday will ends on Friday, January 24.
This year’s theme, “Collaboration for the Intelligent Age,” emphasizes innovative solutions amid geopolitical tensions and rapid technological change.
Speaking at a panel alongside Coinbase CEO Brian Armstrong, Kganyago argued against treating Bitcoin as a reserve asset, likening it to commodities such as beef or apples.
He said that if lobbyists were allowed to dictate what assets governments should hold, it would set a dangerous precedent.
Armstrong countered, describing crypto lobbying in the US as a sign of democracy in action.
He also praised President Donald Trump’s pro-crypto stance, claiming it spurred investments and encouraged Bitcoin adoption.
Armstrong further supported Trump’s proposal for a national Bitcoin reserve, calling it a historic move, though Kganyago dismissed the idea as speculative.
The cryptocurrency sector has invested heavily in US politics, spending over $119 million backing candidates supportive of crypto-friendly legislation.
Critics argue such influence could undermine impartial regulation, a concern echoed by Kganyago.
Jennifer Johnson, CEO of Franklin Templeton, added that institutional investors remain wary of cryptocurrencies due to regulatory uncertainty. She urged clarity to encourage broader adoption.
Founded in 1971 by Klaus Schwab, the WEF aims to foster cooperation among leaders to address critical global economic and social issues.
