Franklin Templeton Forecasts Sovereign Bitcoin Reserves on the Rise in 2025

Franklin Templeton anticipates that “several nations” will adopt Bitcoin as part of their reserves in 2025.

In a December 30 forecast, the firm said Bitcoin is increasingly becoming a digital store of value, aided by institutional and sovereign interest. It also expects crypto technology to be woven more deeply into financial systems next year, shifting focus from speculation to real-world utility.

Some jurisdictions have already hinted at adding Bitcoin to their national holdings. In Hong Kong, Legislative Council member Wu Jiexhuang proposed such a move, pointing to El Salvador and Bhutan as examples of smaller nations that hold BTC.

He also noted the potential market impact of the U.S. approving spot Bitcoin ETFs, as well as President-elect Donald Trump’s suggestion that Bitcoin could serve as a strategic reserve asset.

Meanwhile, Germany’s Free Democratic Party (FDP) has encouraged the European Central Bank and the Bundesbank to consider Bitcoin, with former finance minister Christian Lindner criticizing the country’s slow pace in crypto adoption. He argued that Germany might be missing an opportunity if other nations move faster to capitalize on Bitcoin’s potential.