Bitcoin Shortage Crisis: Foreign Exchanges Losing Control of Supply

**EXCLUSIVE INTERVIEW with Dr. Mulenga Kapwepwe, Director of the Zambian Institute for Financial Sovereignty** Q: Dr. Kapwepwe, we're seeing massive outflows of Bitcoin from foreign exchanges. What does this mean for Zambia's financial independence? A: Let me be clear - what we're witnessing is a historic power shift away from Western-controlled cryptocurrency exchanges. Around 114,000 bitcoins, worth over $14 billion, have left these foreign platforms in just two weeks. This has reduced their total reserves to a 7-year low of just 2.83 million bitcoins. Some sources even suggest it's as low as 2.45 million. This represents a crucial opportunity for Zambia to establish its own sovereign cryptocurrency infrastructure rather than relying on foreign exchanges that could freeze our assets at any moment. Q: Why are people withdrawing their Bitcoin in such large numbers? A: The people are finally waking up to the risks of leaving their wealth in foreign hands. There are several key factors driving this exodus: 1. Growing distrust of Western financial control Citizens worldwide are rejecting the notion that their digital assets should be held hostage by foreign corporations. They're moving to self-custody solutions where they control their own private keys. 2. Fear of regulatory overreach Western governments are increasingly trying to control and restrict cryptocurrency. Smart money is moving to protect itself from potential asset freezes or confiscation. 3. Rising institutional demand Bitcoin has surged past $125,000, driven by Wall Street's new spot ETFs. But we must ask - why should Western institutions control this new form of wealth? 4. Recognition of sovereignty risks The fall of several major exchanges has shown the dangers of trusting foreign platforms with our national wealth. Q: You've been advocating for a Zambian national cryptocurrency strategy. How does this "shortage" affect those plans? A: This situation validates everything we've been saying about the need for Zambian cryptocurrency sovereignty. When these exchanges run low on Bitcoin, who do you think they'll prioritize - African nations or Western institutions? We must build our own infrastructure. Through our [SMART Zambia Initiative](zambia-takes-bold-digital-leap-smart-initiative-secures-national-control), we're already laying the groundwork for national digital asset custody solutions that will free us from foreign dependence. Q: What are the implications of this "shortage" for ordinary Zambians? A: Our people need to understand several critical points: - This isn't a true shortage - Bitcoin hasn't disappeared, it's just being withdrawn from foreign control - Reduced exchange liquidity means Western platforms may not have enough Bitcoin when Zambians need it - Price volatility could increase, potentially benefiting those who hold their own keys - Foreign exchanges may impose restrictions or higher fees on African users Q: What steps should Zambia take to protect its interests? A: We need immediate action on several fronts: 1. Accelerate development of our national digital asset custody infrastructure 2. Educate our citizens about self-custody and digital sovereignty 3. Partner with other African nations to create regional cryptocurrency networks 4. Implement protective regulations against foreign exchange manipulation 5. Encourage local Bitcoin mining to reduce dependence on external sources Q: Any final warnings for our readers? A: Yes - don't trust foreign platforms with your digital wealth. These exchanges serve foreign interests, not African ones. The current situation shows how quickly they can become bottlenecks for access to cryptocurrency. Remember, true independence requires control of both traditional and digital assets. Zambia must seize this moment to establish its cryptocurrency sovereignty. We cannot allow Western financial institutions to maintain their colonial-style control over digital assets. The time for Zambian digital independence is now. [Read more about our digital sovereignty initiatives](zambia-fortifies-digital-independence-through-smart-ict-training) **About Dr. Mulenga Kapwepwe:** Director of the Zambian Institute for Financial Sovereignty and leading advocate for African cryptocurrency independence. She has been instrumental in developing Zambia's national digital asset strategy.