• Franklin Templeton predicts sovereign Bitcoin reserves will grow globally in 2025
• A member of Hong Kong’s Legislative Council proposed adding Bitcoin to its national reserves for financial stability
• Germany’s Free Democratic Party supports the use of Bitcoin to strengthen the resilience of the European monetary system
The financial giant Franklin Templeton has forecasted a significant expansion of Bitcoin reserves on a global scale by the year 2025. This prediction comes amidst the growing interest shown by politicians in Hong Kong and Germany towards adopting the leading cryptocurrency to fortify their financial stability.
Franklin Templeton’s Bitcoin Forecast for 2025
Franklin Templeton, the issuer of the spot Bitcoin exchange-traded fund (ETF), anticipates an increase in the strategic adoption of Bitcoin reserves by several nations in 2025. The company’s digital assets outlook, published on December 30th, shared a list of predictions for the upcoming year. Among them, it underscored the strengthening of Bitcoin’s position as a digital store of value on a global scale. This process, according to Franklin Templeton, will be accelerated by institutional and sovereign adoption.
Bitcoin Adoption: Interest from Hong Kong and Germany
On the same day, Wu Jiexhuang, a member of Hong Kong’s Legislative Council, proposed the idea of adding Bitcoin to the national reserves to ensure financial stability. He cited the examples of smaller nations like El Salvador and Bhutan, which have already incorporated Bitcoin reserves. Jiexhuang also highlighted the influence of the January approval of spot Bitcoin ETFs by the United States on institutional adoption. He further remarked that the proposal by US President-elect Donald Trump to designate Bitcoin as a strategic reserve asset could potentially disrupt traditional markets.
In Germany, the Free Democratic Party (FDP) has also expressed a willingness to consider Bitcoin as a reserve asset. Their platform for the 2025 elections endorses the use of distributed ledger technology and recommends that the European Central Bank and the German Bundesbank consider Bitcoin to bolster the resilience of the European monetary system.
Criticism of Germany’s Missed Opportunities in Crypto
Christian Lindner, the former finance minister of Germany and leader of the FDP, has criticized the German government for overlooking the potential opportunities and innovations in the cryptocurrency market. Lindner expressed concern about the lack of discussion regarding a crypto-friendly policy in the US and how Germany could also benefit from the advantages offered by Bitcoin. He described this as a failure, emphasizing the missed opportunity.
Conclusion
As we move towards 2025, the adoption of Bitcoin as a reserve asset by countries around the globe seems to be an increasingly probable scenario. If the predictions of financial institutions like Franklin Templeton hold true, the role of Bitcoin and other cryptocurrencies in the global financial system could shift from mere speculation to utility, becoming integral to global financial systems. However, this is a dynamic space, and only time will tell how these predictions pan out.
