Saving in Satoshis: A Shift in Collective Saving Perspectives in the Global South

Heath Muchena

Inflation has a way of humbling even the most disciplined savers. While those in stable economies might complain about shrinking purchasing power, in many developing countries, inflation doesn’t just nibble away at savings - it devours them.

This is where a new idea is taking root: saving in satoshis.

Satoshis, the smallest unit of Bitcoin, could transform how communities across the Global South safeguard their wealth. By merging the time-tested practice of collective saving with Bitcoin’s deflationary properties, a movement to save in satoshis can demonstrate how communities can shield their savings from the ravages of inflation - and even grow them.

The Cooperative Spirit of the Global South
Across the Global South, millions of people participate in cooperative savings groups. In South Africa, they’re known as stokvels; in Kenya, they take the form of SACCOs (Savings and Credit Cooperative Organizations); in Latin America, tandas. These groups are financial lifelines, pooling resources to help members pay for emergencies, education, or business ventures.

In South Africa alone, stokvels manage over $3 billion annually. That’s an astounding sum, but it’s also a precarious one. These savings are often held in local currencies prone to extreme devaluation. A stokvel’s hard-earned contributions might lose significant value before they’re even put to use.

Unlike fiat currencies, which governments can print at will, Bitcoin has a fixed supply of 21 million coins. This built-in scarcity makes Bitcoin deflationary - a sharp contrast to currencies like the Zimbabwean dollar or Argentine peso, where overprinting has led to economic chaos.

Satoshis, Bitcoin’s smallest unit (there are 100 million satoshis in a single Bitcoin), make the cryptocurrency accessible even to small savers. For cooperative groups where contributions might be just a few dollars at a time, satoshis offer a way to save without the fear of inflation eating away at their value.

How Saving in Satoshis Could Work
Picture a stokvel in Soweto. Each month, members contribute a portion of their savings in rand, but now, a fraction is converted to Bitcoin. This Bitcoin is held in a communal wallet, growing in value over time. When a member needs a payout - for a child’s school fees, a medical bill, or even to start a small business - the funds are there, shielded from the depreciation that often plagues fiat savings.

The same principle applies to remittance-dependent families. In Nigeria, for instance, remittances accounted for $20 billion in 2022. Yet, converting those funds into naira often results in steep losses, both from exchange fees and inflation. Saving in satoshis ensures that money sent home retains its value - and may even appreciate.

Critics often point to Bitcoin’s volatility as a barrier. It’s true that Bitcoin’s price can swing dramatically in the short term. But over the long term, it has consistently outperformed inflationary currencies. A balanced approach - saving part of the pot in Bitcoin and part in fiat - can help cooperatives manage this risk.

Then there’s the issue of accessibility. While smartphone penetration is growing, many rural communities lack consistent internet access. However, solutions like SMS-based Bitcoin wallets and offline transaction tools are already being developed to bridge this gap.

Finally, regulation looms as a hurdle. Many governments in the Global South are wary of Bitcoin, fearing it could destabilize their monetary systems. But grassroots movements that educate people about the option to save in Satoshis could pave the way for more open-minded policies, especially as the benefits become clear.

The genius of a Save in Satoshis mindset lies in its simplicity. It doesn’t ask communities to overhaul their systems or abandon their currencies. Instead, it offers a complementary tool - a hedge against inflation, a store of value, and, potentially, a source of growth.

Imagine the ripple effects. A stokvel in South Africa inspires SACCOs in Kenya, which sparks similar initiatives in Latin America and Southeast Asia. Bitcoin becomes not just a speculative asset for tech-savvy investors but a practical tool for economic resilience.

This isn’t about hype or quick riches. It’s about giving communities control over their financial futures in a way that’s sustainable and rooted in their own traditions.

A Revolution Worth Saving For
As inflation continues to erode the wealth of millions in developing economies, the idea of saving in Satoshis offers a bold yet practical solution. It blends the old and the new: the collective strength of cooperative savings with the modern power of Bitcoin.

The idea is simple, but its implications are profound. By saving in satoshis, communities can protect their hard-earned wealth, transcend the limitations of local currencies, and build a brighter, more secure financial future - one sat at a time.

And in a world where the value of trust is eroding as fast as the value of fiat, isn’t that worth saving for?