Spot Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton has predicted that more countries will adopt strategic Bitcoin (BTC) reserves next year.
In an official post on X, the EFT issuer noted that BTC will solidify its position as a global financial asset that acts as a digital store of value. The asset management firm added that institutional and sovereign adoption will fuel 2025.
How Far Can Countries Adopt BTC?
While the asset manager did not mention countries that may adopt Bitcoin reserves, Franklin Templeton stated that next year will shift from speculation to utility. The firm further noted that crypto’s foundational technologies will become integral to the global financial and operational system. Additionally, the company said stakeholders should pay close attention to regulatory developments and institutional moves in 2025.
While other countries plan to invest in BTC as a reserve asset by next year, as Franklin Templeton predicted, some have proposed adding BTC to their national reserves this year.
BTC As a National Reserve Asset
On December 30, 2024, Wu Jiexhuang, a member of the Hong Kong Legislative Council, proposed incorporating BTC into the nation’s reserves to enhance financial stability. He cited the examples of smaller countries, such as El Salvador and Bhutan, which have already adopted Bitcoin reserves, as models for Hong Kong to consider.
Jiexhuang stated the market influence of the United States’ January approval of spot Bitcoin ETFs had driven increased institutional adoption. He also mentioned that US President-elect Donald Trump’s proposal to designate BTC as a strategic reserve asset could have significant implications for traditional financial markets.
Also, in Germany, the Free Democratic Party (FDP) has shown a willingness to explore BTC as a reserve asset. As part of its 2025 election platform, the FDP advocated for adopting distributed ledger technology and recommended that the European Central Bank and the German Bundesbank evaluate bitcoin’s potential to enhance the resilience of Europe’s monetary system.
Christian Lindner, the former finance minister of Germany and leader of the FDP, also accused the German government of overlooking opportunities and advancements in the crypto sector.
Lindner further noted that he had not encountered any discussions regarding adopting crypto-friendly policies in the US and how Germany might similarly benefit from the potential advantages of the crypto asset.
