Franklin Templeton predicts Bitcoin reserves to expand globally in 2025

Franklin Templeton predicts sovereign Bitcoin reserves will grow in 2025, with politicians in Hong Kong and Germany signaling interest in adopting the cryptocurrency for financial stability.
Franklin Templeton predicts sovereign Bitcoin reserves will grow in 2025, with politicians in Hong Kong and Germany signaling interest in adopting the cryptocurrency for financial stability.

Spot Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton expects more nations to adopt strategic Bitcoin reserves in 2025, according to the company’s digital assets outlook. 

On Dec. 30, the ETF issuer published a list of predictions for next year, including its expectations for “several nations” to adopt Bitcoin (BTC) reserves. Franklin Templeton said Bitcoin will solidify its position as a global asset that acts as a digital store of value. The ETF issuer said this will be accelerated by institutional and sovereign adoption. 

Hong Kong, Germany, United States, Policy

Source: Franklin Templeton

While the ETF issuer did not provide details on which countries may adopt Bitcoin reserves, Franklin Templeton expects a “shift from speculation to utility” in 2025. The company said crypto’s foundational technologies will become integral to global financial systems next year. 

Related: Saylor floats US crypto framework with $81T Bitcoin reserve plan

Hong Kong, Germany signals interest in Bitcoin reserves

On Dec. 30, Wu Jiexhuang, a member of Hong Kong’s Legislative Council, proposed adding Bitcoin to its national reserves for financial stability. Jiexhuang pointed to smaller nations like El Salvador and Bhutan, which have already adopted Bitcoin reserves, as examples for Hong Kong to follow.

Jiexhuang also noted the market impact of the January approval of spot Bitcoin ETFs by the United States, which has bolstered institutional adoption. He also said that US President-elect Donald Trump’s proposal to make Bitcoin a strategic reserve asset could impact traditional markets.

Bitcoin proponents like Strike CEO Jack Mallers say that Trump may issue an executive order designating Bitcoin as a reserve asset for the US. 

Similarly, in Germany, the Free Democratic Party (FDP) has expressed openness to adopting Bitcoin as a reserve asset.

The FDP’s platform for the 2025 elections supports the use of distributed ledger technology and suggests the European Central Bank and the German Bundesbank consider Bitcoin to strengthen the resilience of the European monetary system.

Christian Lindner, Germany’s former finance minister and leader of the FDP, criticized the German government for missing crypto opportunities and innovations. 

Hong Kong, Germany, United States, Policy

Source: Orangene Orange

Lindner said that he had not heard a discussion about a crypto-friendly policy being implemented in the US, and how Germany could also gain the advantages that Bitcoin could bring. The ex-finance minister described this as a “failure,” emphasizing that they are missing out on this opportunity.   

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