- The US Bitcoin Reserve is gaining accolades from investment managers like Franklin Templeton.
- Standard Chartered believes the US Government may liquidate Gold to buy Bitcoin.
Global investment firm and asset manager Franklin Templeton has endorsed the United States’ strategic Bitcoin (BTC) reserve. The firm asserted that the initiative supports the country’s economic growth.
Impact of a Bitcoin Reserve on the US Economy
As we discussed earlier, discussions about the US Bitcoin strategic reserve have intensified since President Donald Trump signed an executive order. Franklin Templeton believes a Bitcoin reserve could help the US mitigate its financial struggles.
Taking to the X platform, the asset manager commended the US government for recognizing Bitcoin as a reserve asset. The firm said the creation of a Bitcoin reserve marks a landmark event in the history of Bitcoin. Franklin Templeton added that the Federal government stands to benefit from a strategic Bitcoin reserve, potentially alleviating deficit concerns.
The investment giant sees the initiative as a positive development for the industry despite acknowledging Bitcoin’s inherent volatility. Highlighting key details of the Bitcoin reserve, Franklin Templeton said taxpayers are not required to fund the initiative. Rather, funding would come from about 200,000 BTC, confiscated by the US government through criminal and civil proceedings.
The asset manager noted that the government does not intend to sell its Bitcoin, which may help create market stability. This strategy can also help eliminate the risk of a large-scale BTC dump, further boosting investors’ confidence.
Additionally, the government’s budget-neutral approach to expanding its reserve signals strong global support for Bitcoin as a legitimate store of value. This move can potentially encourage further sovereign and institutional Bitcoin adoption.
Meanwhile, the positive sentiments surrounding the establishment of a Bitcoin reserve have failed to reflect in the coin’s price. As of this writing, BTC is trading at $79,065, down 1.4% in the last 24 hours. As we mentioned in our earlier article, some analysts expressed concerns that BTC could drop to $70,000.
Mixed Sentiments and More Details About US Bitcoin Reserve
Other proponents, in addition to Franklin Templeton, argue that a Bitcoin reserve could strengthen the U.S. economy, solidifying its leadership in digital assets. They add that the reserve could generate trillions in new demand for the dollar, potentially reducing long-term interest rates.
In a recent update we covered, Solana Labs’ co-founder Anatoly Yakovenko likened Trump’s Bitcoin reserve Executive order to a scalpel. This statement represents the precision and clarity this initiative could bring to the crypto industry.
On the other hand, opponents warn of increased volatility in an already unpredictable financial system. Peter Schiff mocked Trump’s reserve plans, sarcastically announcing the creation of his own BTC reserve.
In our last update, we examined Standard Chartered’s statement that the US government might sell part of its $800 billion gold reserves to buy Bitcoin. This move, if successful, could trigger volatility for gold and the crypto markets.
