Franklin Templeton Predicts Global Adoption of Strategic Bitcoin Reserves in 2025

Spot Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton has forecasted a wave of nations adopting Bitcoin as a strategic reserve in 2025.

According to the company’s digital assets outlook, published on December 30, Bitcoin is expected to solidify its position as a global digital store of value, driven by institutional and sovereign adoption.

While Franklin Templeton did not specify which nations might take this step, the firm emphasized a shift from speculative use to utility, suggesting Bitcoin’s underlying technology will play a more integral role in global financial systems.

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Bitcoin Adoption Among Nations Find Momentum

The prediction aligns with growing momentum in Bitcoin

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adoption as smaller nations like El Salvador and Bhutan continue to use Bitcoin reserves as part of their economic strategies.

Adding to this trend, Wu Jiexhuang, a member of Hong Kong’s Legislative Council, proposed incorporating Bitcoin into Hong Kong’s national reserves for financial stability.

He highlighted the impact of the United States’ approval of spot Bitcoin ETFs in January, accelerating institutional interest in the cryptocurrency.

Bitcoin will solidify its position as a global financial asset acting as a digital store of value, accelerated by sovereign and institutional adoption. We expect to see strategic BTC reserves added by several nations

— Franklin Templeton Digital Assets (@FTDA_US) December 30, 2024

In Europe, Germany’s Free Democratic Party (FDP) has also expressed openness to adopting Bitcoin as a reserve asset. The FDP’s platform for the 2025 elections advocates for distributed ledger technology and calls on institutions like the European Central Bank and the German Bundesbank to consider Bitcoin to enhance the resilience of Europe’s monetary system.

Christian Lindner, the former German finance minister and leader of the FDP, criticized the government for neglecting opportunities in the crypto sector. He described this oversight as a “failure,” arguing that Germany risks falling behind in leveraging Bitcoin’s potential benefits.

In the US, President-elect Donald Trump’s suggestion to make Bitcoin a strategic reserve asset has added to the ongoing discussion about Bitcoin’s role in traditional markets.

Furthermore, several US states are considering adding Bitcoin to their treasury reserves, with Ohio becoming the latest state to do so.

In December, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.

Pennsylvania took a similar step in November, with Representative Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin, citing the asset’s potential to hedge against economic uncertainty.

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Japan Unsure About Bitcoin Strategic Reserve

It is worth noting that not everyone is optimistic about a Bitcoin reserve. Just recently, Japan’s Prime Minister Shigeru Ishiba said that his government currently lacks sufficient information to decide whether to establish a Bitcoin strategic reserve.

Ishiba addressed questions about whether Japan would follow other countries, such as the US, in considering Bitcoin as part of its reserves.

He stated that the government does not yet understand the “movements” of nations exploring Bitcoin adoption for reserves, making it difficult to express a clear position.

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