Key Points
- 21Shares predicts another nation will adopt Bitcoin as a reserve asset following El Salvador’s lead.
- Bitcoin’s performance during economic crises and its increasing global recognition are key factors for this prediction.
21Shares, a major issuer of cryptocurrency exchange-traded products, has projected that another country will likely emulate El Salvador by adopting Bitcoin as a reserve asset.
Their 2025 State of Crypto Market Outlook suggests that Bitcoin’s rising acceptance as a valid financial asset may lead to countries, notably Argentina, incorporating Bitcoin into their sovereign reserves in the near future.
Bitcoin’s Role in Economic Stability
In a groundbreaking move that impacted the global financial system, El Salvador was the first nation to officially incorporate Bitcoin into its reserves in 2021. This signaled a shift towards a new standard for reserve assets.
Since then, Bitcoin has attracted more attention from individual investors and institutional entities. These groups view the cryptocurrency not just as a speculative investment, but also a store of value with increasing worldwide utility.
21Shares suggests that due to its growing global acceptance, Bitcoin could serve as a good reserve for central banks across the globe. This concept isn’t new. Dr. Matthew Ferranti, a former member of the White House Council of Economic Advisers, has emphasized the economic and strategic advantages of central banks incorporating Bitcoin into their reserves.
In his October report titled “The Case for Bitcoin as a Reserve Asset”, Ferranti presented several convincing reasons why central banks might consider holding Bitcoin alongside traditional assets like gold.
Bitcoin’s Performance during Economic Crises
Ferranti argued that Bitcoin has proven its worth during economic crises. He noted that the cryptocurrency has demonstrated resilience and growth during major economic disruptions, including the fallout from US financial sanctions and the collapse of prominent banks in 2023.
He stated that Bitcoin’s price spiked during the 2023 Silicon Valley Bank crisis and rose significantly after the US imposed sanctions on Russia following its invasion of Ukraine in 2022.
Ferranti explained that a key reason for this performance is that Bitcoin operates outside the traditional banking system, making it immune to the geopolitical risks and financial policies that can affect fiat currencies and traditional assets. He further stated that Bitcoin offers an alternative store of value during times of uncertainty, providing a financial cushion for nations facing external pressures.
Stablecoins to Continue Integration with TradeFi
Considering these factors, 21Shares anticipates that countries like Argentina might follow El Salvador’s lead. The company also sees Ethereum and stablecoins playing a central role in the industry’s growth next year.
According to the 2025 State of Crypto Market Outlook, “Ethereum will regain its revenue levels, likely surpassing 100% of its target growth due to strategic Layer 22 integrations”. As for stablecoins, the company believes the digital asset will “deepen” integrations with the traditional finance market.
