According to CryptoPotato, developing countries will continue to adopt Bitcoin (BTC) before it becomes imperative for all national treasuries to hold, according to Sandy Kaul, Head of Digital Asset & Investor Advisory Services at $1.5 trillion asset manager Franklin Templeton. Kaul believes that BTC is already becoming an attractive tool for less developed nations to compete with larger economies on a more equal playing field by combining their buying power around the digital currency. She also mentioned that every treasury will need to hold BTC reserves to facilitate efficient conversions as it can be used as the base unit of international trade.

While Central Bank Digital Currencies (CBDCs) may also make cross-border trade more efficient, Kaul said such currencies will still be subject to national exchange rate risks. By contrast, Bitcoin can be used as the base unit of international trade, meaning every country will need to hold some BTC reserves to facilitate efficient conversions.

Franklin Templeton is one of 13 applicants gunning for a Bitcoin spot ETF in the United States. As regulators grow more open- minded on the product, many analysts expect Franklin and other applicants to be approved for launch early next year. Kaul called BTC one of the best-performing asset classes in the past decade and said it can provide alternative exposure and diversification to portfolios, and thus better risk-adjusted returns.