Franklin Templeton, a prominent Bitcoin exchange-traded fund (ETF) issuer, has forecasted a rise in sovereign adoption of Bitcoin as a strategic reserve asset in 2025.
In its latest digital assets outlook published on December 30, the company predicted that Bitcoin would solidify its role as a global digital store of value, driven by institutional and governmental adoption.
The report emphasized a pivotal shift in cryptocurrency usage, moving from speculative trading to practical utility within global financial systems. While specific nations were not named, Franklin Templeton highlighted a growing trend among countries looking to leverage Bitcoin for financial stability and resilience.
The call for sovereign adoption is gaining momentum in key regions like Hong Kong and Germany. Wu Jiexhuang, a member of Hong Kong’s Legislative Council, recently proposed incorporating Bitcoin into the city’s national reserves. Citing smaller nations such as El Salvador and Bhutan that have successfully adopted Bitcoin reserves, Jiexhuang argued that this move could enhance financial stability. He also noted the influence of the January approval of spot Bitcoin ETFs in the U.S., which has boosted institutional confidence in the asset.
Also, the Free Democratic Party (FDP) in Germany has expressed openness to adopting Bitcoin as a reserve asset as part of its platform for the 2025 elections. The party advocates for the use of distributed ledger technology and has suggested that institutions like the European Central Bank and the Bundesbank consider Bitcoin to strengthen the European monetary system.
Christian Lindner, the former German finance minister and FDP leader, criticized the current administration for missing opportunities to embrace cryptocurrency innovations. Lindner labelled the lack of discussion around a crypto-friendly policy as a “failure,” explaining the potential advantages Germany could gain by integrating Bitcoin into its financial framework.
With growing support from both institutional and sovereign entities, Franklin Templeton anticipates Bitcoin’s evolution into a cornerstone of global financial stability in the coming year.
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