A Vision for Bitcoin as the Base Unit of Trade
A strategist at Franklin Templeton, a global investment giant, believes that Bitcoin (BTC) will eventually become the base unit of trade and envisions every national treasury holding the cryptocurrency. Sandy Kaul, the head of Franklin Templeton’s digital asset and industry advisory services, points out that several countries have already started adopting BTC.
Kaul argues that Bitcoin will be more efficient than central bank digital currencies (CBDCs) for national treasuries. He suggests that less-developed nations can level the playing field by harnessing the buying power of Bitcoin to compete with larger economies. Additionally, Bitcoin payments can streamline cross-border trades without the need for foreign exchange conversions.
Kaul further asserts that it is possible for countries worldwide to conduct trades using Bitcoin as a base unit. As Bitcoin integrates into the traditional banking ecosystem, it may serve as a foundational part of the system. This raises the question of whether people will eventually gravitate towards a global currency not tied to any government’s policies.
Hot Take: Bitcoin’s Potential as a Global Reserve Currency
Franklin Templeton’s strategist believes that Bitcoin has the potential to transform international trade and financial systems. With its increasing adoption by nation-states and its potential efficiency in cross-border transactions, BTC could become a base unit of trade. This vision challenges traditional fiat currencies and raises questions about the role of central bank digital currencies in the future. While uncertainties remain, Bitcoin’s versatility and global accessibility position it as a formidable contender for reshaping the world economy.
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