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- Franklin Templeton predicts that more nations will adopt Bitcoin as a reserve asset in 2025, with growing institutional and sovereign support.
- Hong Kong and Germany have expressed interest in Bitcoin reserves, citing financial stability and opportunities to strengthen monetary systems.
Franklin Templeton, a prominent issuer of spot Bitcoin exchange-traded funds (ETFs), has predicted a significant shift in Bitcoin adoption for 2025. In its outlook for the digital asset, the firm suggests that several countries will integrate Bitcoin as a strategic reserve asset. This is likely to put Bitcoin in a better place as a global store of value, especially with institutional and government support.
The ETF issuer expects a transformation in the application of cryptocurrencies from a speculative tool to a utilitarian one. Franklin Templeton has predicted that the underlying technologies of cryptocurrency will transform global financial systems by the end of next year.
Hong Kong and Germany are signaling interest
Hong Kong and Germany have expressed interest in including Bitcoin in their national currencies. Wu Jiexhuang, a functional constituency member in Hong Kong’s Legislative Council, proposed that Bitcoin be included in the territory’s reserves for better economic balance. He cited examples of smaller countries, El Salvador and Bhutan, that have accepted Bitcoin as part of their economic policies.
Jiexhuang also noted that US regulatory measures such as the approval of spot Bitcoin ETFs have played a key role in fostering institutional involvement. Also, speculation about US President-elect Donald Trump’s policy to accept Bitcoin as a reserve form of assets fueled discussions in Hong Kong.
The Free Democratic Party of Germany has supported the idea of using Bitcoin in the country’s backup plan. The party’s program for the next election in 2025 includes the adoption of distributed ledger technology to improve the European financial system. Christian Lindner, leader of the Free Democratic Party, accused the German government of missing opportunities in the crypto arena and urged the government to take advantage of the opportunities that come with Bitcoin.
Regulatory clarity and market impact
Franklin Templeton also highlighted the possibility of Donald Trump’s re-election impact on cryptocurrency adoption. His administration is characterized by providing regulatory certainty and Paul Atkins is likely to be appointed as the new chairman of the SEC, promoting the growth of crypto products such as tokenized securities.
The US approval of spot Bitcoin ETFs earlier this year has already paved the way for this shift in the market. Institutional investors also piled in and bought more than $106 billion worth of Bitcoin in 2024 alone.
Bitcoin hit an all-time high of $100,000 at the beginning of the year, but traded at $92,700 at the end of the year. The overall expansion of the market to almost 4 trillion dollars indicates the further integration of cryptocurrency into the financial world.
Another innovative concept in the crypto market is Decentralized Physical Infrastructure Networks (DePIN). Currently valued at $29 billion, DePIN promises that decentralized technologies can even transform industries that rely on physical pathways.
