The head of Franklin Templeton’s digital asset and industry advisory services sees ongoing adoption of BTC by nation-states and emphasizes its potential to surpass CBDCs in efficiency for national treasuries.
A strategist from Franklin Templeton, a global investment firm, predicts a future where every national treasury holds Bitcoin (BTC), envisioning the cryptocurrency becoming the fundamental unit of trade. Sandy Kaul, the head of Franklin Templeton’s digital asset and industry advisory services, shared this perspective in a recent interview on crypto influencer Natalie Brunell’s YouTube channel.
Kaul also observes the ongoing adoption of BTC by nation-states and emphasizes its potential to surpass central bank digital currencies (CBDCs) in efficiency for national treasuries.
In a recent statement, Sandy Kaul, the head of Franklin Templeton’s digital asset and industry advisory services, expressed a forward-looking perspective on Bitcoin (BTC) adoption by national treasuries. Kaul envisions a future where every country’s treasury holds BTC, citing a trend that has already commenced. Notably, Kaul sees BTC as a means for less-developed nations to level the playing field, combining buying power around Bitcoin to compete more effectively.
Kaul also emphasizes the potential for BTC to streamline international trade, offering more efficient payment solutions compared to existing foreign exchange conversion methods. While acknowledging the promise of CBDCs, Kaul notes that BTC’s universal nature could reduce translation and exchange rate risks associated with cross-border trades.
According to Kaul, the idea of Bitcoin serving as the base unit for international trade is plausible, suggesting its integration into the traditional banking ecosystem as a foundational element. The key question, as Kaul poses, is whether people will gravitate towards a global and government-independent solution over time.
Bitcoin Offers a Means of Diversification
Franklin Templeton is also among the contenders vying for approval to launch a Bitcoin spot ETF in the United States, as regulatory attitudes towards such products become more favorable. Analysts anticipate approvals for Franklin and other applicants in the early part of next year, marking a significant step in providing BTC exposure through an ETF structure for investor portfolios.
Sandy Kaul also hailed BTC as one of the “best-performing asset classes” over the past decade, even during challenging periods like the “crypto winter.” Emphasizing BTC’s role as an alternative asset class, Kaul further asserted that it can offer unique exposure and diversification to portfolios, leading to better risk-adjusted returns.
Looking ahead, Kaul envisions crypto unlocking a multitude of benefits for modern-day investors and spenders in the next 5 to 10 years. She foresees a scenario where invested funds act akin to loyalty programs, providing users with various advantages and perks.