A strategist with global investment giant Franklin Templeton says they envision every national treasury one day holding Bitcoin (BTC) and that the crypto king will eventually become the base unit of trade.
In a new interview on crypto influencer Natalie Brunell’s YouTube channel, Sandy Kaul, the head of Franklin Templeton’s digital asset and industry advisory services, says that we’ve already begun to see nation-states adopting the top crypto asset by market cap.
[adinserter block="1"]Kaul also notes that BTC will be even more efficient than central bank digital currencies (CBDCs) for national treasuries.
“I think you’re already starting to see [country’s holding BTC], and you’re starting to see even this play into less-developed nations wanting to play on a more equal playing field by combining some of their buying power around Bitcoin and using that as a way to compete more effectively with bigger countries and bigger economies…
I also think that [BTC is] going to become something that every treasury needs to hold because portions of their business will just be facilitated more easily through Bitcoin payments than through foreign exchange conversions that need to happen to enable cross-border trades today.
So a lot of people see a lot of promise in central bank digital currencies. I think there will be a lot of efficiencies that get created by them, but those are going to still require all of that translation and exchange rate risk that you carry in moving from country to country whereas a Bitcoin is a Bitcoin in every country.”
According to Kaul, it is within the realm of possibility for countries around the world to conduct trades using Bitcoin as a base unit.
“I do still think that the potential to see [BTC] used as the base unit of international trade exists. At a minimum, you’re going to see it used for certain types of trade and that means that every country is going to have to hold some reserves.
So I just see it working its way increasingly into the traditional banking ecosystem as just a foundational part of that system, and I think the question then becomes: over time, do people start to gravitate more to something that works globally and isn’t tied to any government’s policies?”
Bitcoin is trading for $42,051 at time of writing.
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