By Anurag Arjun, Avail
You’ve probably heard this at a dinner party: “If only we had bought Bitcoin ten years ago.” Now imagine that conversation echoing in the corridors of a central bank, where the stakes are a nation missing one of the most asymmetric financial opportunities of the century.
For emerging economies — countries like India, Brazil, Indonesia, South Africa, Nigeria, Thailand, or Vietnam — strategic exposure to cryptocurrencies is essential for future economic resilience. They collectively represent over 40% of the global population and approximately 25% of global GDP, yet they remain vulnerable to external economic shocks, including currency fluctuations, trade disruptions, and more. Today, their sovereign reserves remain heavily reliant on traditional assets like gold and foreign exchange. But those aren’t sufficient hedges in a rapidly digitizing world.
Cryptocurrencies aren’t an experiment anymore. While Bitcoin is the most widely adopted, making it the primary example in this discussion, the broader argument applies to cryptocurrencies as a whole. The Bitcoin network has been operational for over 99.98% of the time since its inception in 2009.
Cryptocurrencies havesurvived wars, regulatory crackdowns, and multiple financial crises. Over the last decade, bitcoin has appreciated nearly 200X, far outpacing tech giants like NVIDIA or Apple.
The crypto space, no denying, has faced scams, rug pulls, and bad actors. This is common in virtually any financial system — think early stock markets or banking. That’s why smart regulation is critical. Countries like Singapore, Japan, and Switzerland have already struck a balance between consumer protection and innovation, offering models for others. But these risks don’t negate crypto’s core appeal — they demand careful governance.
Diversification is key. Ask any central banker, fund manager, or financial advisor: you don’t put all your eggs in one basket, and you certainly don’t bet the future of an economy on a single asset class. In a world that’s rapidly digitizing, ignoring digital assets like cryptocurrencies is a mistake. These assets tend to have little correlation with how other traditional assets perform, making bitcoin a strong hedge against economic turbulence.
We’re seeing entire publicly listed companies built around bitcoin as a core asset. Take Michael Saylor’s Strategy, which started as a software firm and now holds over 506,137 BTC (approximately $42 billion as of writing). Countries like El Salvador have adopted Bitcoin as legal tender. Vietnam, India, and Thailand rank among the top 10 countries globally for cryptocurrency adoption already. EAEs must follow this shift or fall behind.
Bitcoin isn’t the new digital gold — it serves a very different role. In many cultures, more so in mine, we Indians love our gold. We hoard it, gift it, and trust it as a store of value. Central banks across the world have been buying gold at a record pace in recent years. But gold wasn’t always the safe bet we think it is today — back in the 1980s, its price crashed by 60% before bouncing back.
Bitcoin brings new utility: it can be transferred anywhere in the world in minutes, divided into microscopic fractions, and secured with cryptographic protocols. Gold and Bitcoin share fundamental traits — they’re scarce, resilient, and hedge against uncertainty — but gold preserves value traditionally, while bitcoin expands possibilities digitally. They don’t replace each other; they work together.
Critics often dismiss crypto as mere speculation, but its utility is real. Major companies like Microsoft and Starbucks now accept bitcoin and stablecoins for transactions. U.S. bitcoin ETFs have attracted over $12 billion in institutional inflows within months. Crypto enables faster, cheaper remittances, cutting global fees from 6.4% to under 1%, saving billions for developing economies. With over $100 billion locked in DeFi protocols, it’s clear that the future of finance is already being built on blockchain.
Emerging economies should take a strategic, forward-looking step toward economic resilience. A 1-2% allocation in digital assets is smart, not a gamble. Track its performance, take cues from early movers like the U.S., El Salvador, and Strategy, and refine the approach as you go. Encourage financial institutions to experiment with crypto-backed financial instruments in a limited way. Proactive regulatory frameworks are vital to foster innovation while ensuring stability.
Countries must position themselves for the future. Holding digital assets reduces reliance on external financial systems and insulates them from geopolitical and monetary shifts. We’ve seen this playbook before — these countries weren’t the first to embrace digital payments, yet they built world-class infrastructure like India’s UPI, Brazil’s PIX, and Nigeria’s NIBSS. The same leadership is possible in crypto reserves. With the global crypto market nearing $3 trillion and institutional adoption accelerating, the question isn’t if this shift will happen—it’s who will lead it.
Emerging economies can start building a strategic reserve today or hear in five years at another dinner party in five years, “If only we had bought bitcoin in 2025.” The time is now.
