- Franklin Templeton sees Bitcoin reserves expanding globally as nations eye adoption in 2025.
- Germany, Hong Kong, and Poland show interest in Bitcoin reserves amid growing utility focus.
- Bitcoin’s role as a digital asset strengthens as nations explore strategic reserves for 2025.
According to asset manager Franklin Templeton, the world economy is set for a massive shift in the coming years, with several countries starting to treat Bitcoin as a reserve currency in 2025. The prediction is based on the company’s outlook for digital assets and envisions a “shift from speculation to utility” as nations and institutions increasingly adopt Bitcoin as a store of value.
Bitcoin as a Strategic Reserve Asset
The report reveals that Bitcoin is increasingly used as an international investment asset. Franklin Templeton believes that several countries may deliberately hold Bitcoin as a reserve as they view it as an inflation hedge in addition to foreign exchange reserves. This is attributed to clearer regulations, increased institutional adoption, and the integration of blockchain into global financial systems.
Franklin Templeton pointed out that some of these trends would further accelerate Bitcoin’s position as a digital store of value. Additionally, a factor fueling institutional participation and Bitcoin adoption is the green light given to Bitcoin spot exchange-traded funds (ETFs) in markets like the United States.
Franklin Templeton’s latest report reveals that tokenized products and stablecoins are now central in the transformed financial structure. Potential US stablecoin regulations could enable conventional financial institutions to launch their stablecoins, further propelling the DeFi landscape globally.
The role of Bitcoin as a store of value is also expected to become more dominant, as several nations may consider including Bitcoins in their assets by 2025 at the latest. Similarly, decentralized physical infrastructure networks (DePINs) and the integration of artificial intelligence (AI) with blockchain are expected to propel innovation and increase efficiency in industries, such as the logistics of IoT, to assist in automating on-chain transactions across multiple platforms.
Countries Exploring Bitcoin Reserves
Some countries consider the possibility of Bitcoin becoming part of central bank reserves. Hong Kong has displayed interest, with a member of the Hong Kong Legislative Council recently suggesting that Bitcoin should be included as part of the country’s reserve. According to the proposal, Bitcoin could be an opportunity to achieve financial stability and develop the crypto-related sector.
Germany has also shown its willingness to accept Bitcoin integration. The Free Democratic Party (FDP) has included Bitcoin reserves in its platform for the 2025 elections. The party sees Bitcoin as a way to strengthen the European monetary system and suggests the European Central Bank and the German Bundesbank consider adopting it.
Poland is another nation exhibiting its interest. Sławomir Jerzy Mentzen, a political character promoting crypto-friendly regulations, has called for creating a national Bitcoin reserve to put Poland at the vanguard of the cryptocurrency industry.
Skepticism Surrounding Bitcoin Reserves
Nevertheless, some nations are still concerned about buying Bitcoin as a reserve currency. Japan has shown doubts since Bitcoins have unpredictable prices. Even though an official from the Japanese opposition party mentioned it, the country’s PM highlighted the risks of employing an unstable digital asset as a treasury reserve.
The Blockchain Bulletin, Dec 27: Japan Rejects Plans to Set Bitcoin ReserveRussia has also expressed interest but is cautious. The country’s finance minister has noted that the price of Bitcoin is very volatile and thus expressed willingness to adopt the currency only when the price becomes stable.
