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 list for next year. 

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

Source: Franklin Templeton

While the ETF issuer did not provide details on which countries it thinks 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. 

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 United States’ January approval of spot Bitcoin ETFs, 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 believe 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, also criticized the German government for missing opportunities and innovations. 

Source: Orangene Orange

Lindner said that he had not heard a discussion about a crypto-friendly policy being implemented in the US and how they 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.   

Magazine: Bitcoin payments are being undermined by centralized stablecoins