- Multiple governments explored Bitcoin adoption for national reserves in 2024, sparked by Trump’s commitment at the Bitcoin conference and followed by initiatives in Brazil, Russia, Poland and city-level interest in Vancouver and Bern.
- Switzerland’s Federal Chancellery approved the “Bitcoin Initiative” proposal to include Bitcoin in central bank reserves, pending Federal Assembly review and potential nationwide referendum.
- Franklin Templeton forecasts 2025 will transition crypto from speculation to utility, emphasising tokenisation, stablecoins, DeFi and DePIN as key growth areas.
- Japan’s Prime Minister Ishiba declined immediate Bitcoin reserve adoption, citing the need for better understanding of other nations’ strategies, particularly the United States’ plans.
2024 shaped up to be all about crypto exchange-traded funds (ETFs) and institutional adoption. And among that adoption, a trend emerged for governments to discuss allocating Bitcoin to national/ state/ local reserves.
Think Donald Trump, who kicked it all off at the Bitcoin conference when he promised to make the United States a leader in crypto and that the country would be buying Bitcoin to add to its national reserves. Brazil was another country that followed a similar path, as were Russia and Poland to varying degrees.
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There are also cities embracing Bitcoin, such as Vancouver in Canada which has recently made progress in adding BTC to the city’s coffers, and Swiss city Bern studying the possibility of Bitcoin mining.
Shifting From Speculation to Utility
ETF veteran Franklin Templeton believes that we’ll see much more of that in 2025, with Bitcoin cementing its position and nation states adding it to their reserves.
Although they didn’t name specific countries, they said in their 2025 predictions that “2025 will mark a shift from speculation to utility, as crypto’s foundational technologies become integral to global financial and operational systems”.
They also urged stakeholders to remain vigilant regarding regulatory and technological changes ahead:
Stakeholders should watch regulatory developments, institutional moves, and advancements in AI-crypto convergence to navigate this dynamic landscape.
Franklin TempletonSome of the trends likely shaping the industry, according to Franklin Templeton, will be tokenisation, stablecoins and decentralised finance (DeFi), as well as decentralised physical infrastructure networks (DePIN).
Switzerland Says Yes, Japan Says Maybe
Meanwhile, the Federal Chancellery in Switzerland has given the nod of approval to a proposal named “Bitcoin Initiative”.
The initiative launched on December 5, 2024, seeks to amend the constitution to require the central bank to include Bitcoin in its reserves, citing its potential to enhance financial stability and sovereignty.
The proposal states:
In favour of a financially strong, sovereign and responsible Switzerland (Bitcoin Initiative) […] the Swiss National Bank shall build up sufficient currency reserves from its earnings; part of these reserves shall be held in gold and in Bitcoin.
Swiss Proposal
After verifying legal compliance and collecting necessary signatures, the proposal now awaits further review by the Federal Assembly before potentially moving to a nationwide referendum.
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Over in Japan things are looking a little different. After Japanese lawmaker Satoshi Hamada proposed that his country explore adding Bitcoin to the national stockpile, Prime Minister Shigeru Ishiba subsequently rejected the request, at least for now.
Ishiba said the government doesn’t have enough of an understanding of what other countries (including the United States) are planning in regards to Bitcoin reserves.
It is difficult for the government to express its views.
Shigeru Ishiba, Prime Minister of JapanCredit: Source link
