Bitcoin to be Embraced by National Treasuries
According to Franklin Templeton, a global investment management organization, Bitcoin (BTC) will eventually be held by every national treasury as it increasingly becomes a “foundational part“ of the banking ecosystem. The firm predicts that BTC will become increasingly integrated into the traditional banking ecosystem and may eventually be held as part of a country’s reserves. This would allow treasuries to interact with the digital currency for various business processes and even cross-border payments.
Bitcoin More Efficient Than CBDCs
Franklin Templeton has predicted that Bitcoin will be more efficient than central bank digital currencies (CBDCs) for national treasuries. The company, which manages $1.53 trillion in assets, believes that BTC will be held by treasuries due to its ease of use and potential to facilitate business processes, especially cross-border payments.
Bitcoin May Become A Base Unit For International Trade
Additionally, the Franklin Templeton strategist anticipates that Bitcoin’s efficiency in cross-border payments could lead to it becoming a base unit for international trade. She predicts that the use of BTC in international trade will require every country to hold some reserves in the digital currency.
Franklin Templeton Meets With SEC to Discuss Spot BTC ETF
Franklin Templeton is currently one of the contenders for a spot Bitcoin ETF (exchange-traded fund) and has met with the US Securities and Exchange Commission (SEC) to discuss its ETF application. The firm filed its application in September 2023, with a decision scheduled for May 30.
Hot Take
As Bitcoin continues to gain momentum and integrate into the traditional banking ecosystem, it’s clear that national treasuries will consider holding BTC as part of their reserves. This could revolutionize the way countries interact with financial systems and conduct cross-border payments, making Bitcoin a crucial component of the global banking infrastructure.
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