More Countries to Establish Bitcoin Reserves in 2025, Fidelity Says – Decrypt

Financial services giant Fidelity predicts that several countries will start stockpiling Bitcoin this year, leading to widespread adoption of the world's oldest cryptocurrency.

Fidelity wrote that some countries may establish strategic Bitcoin reserves in 2025 to avoid “worsening inflation, currency depreciation, and increasingly catastrophic budget deficits.” . report on monday.

That's because world leaders are starting to embrace cryptocurrencies following the US's touted plans. accept bitcoin According to Matt Hogan, an analyst at Fidelity Digital Assets, interest from institutional investors is increasing.

“We expect more nation states, central banks, sovereign wealth funds, and government treasuries to seek to establish a strategic position in Bitcoin,” Hogan said in the report.

Countries interested in cryptocurrencies may model their plans to create Bitcoin reserves after policies in pro-Bitcoin countries such as Bhutan and El Salvador, where officials have already made significant gains. do not have.

Bitcoin holdings in El Salvador Bhutan's assets are valued at more than $570 million, while on-chain analytics platform Arcam Intelligence holds more than $1.1 billion. data indicates.

The United States holds more Bitcoin than any other country in the world, valued at approximately $19.3 billion. China, the United Kingdom, and Ukraine follow with $19.2 billion, $6.2 billion, and $4.7 billion in cryptocurrencies, respectively.

However, these huge holdings do not necessarily lead to huge profits.

Some countries, such as the United States, have certain requirements for handling and auctioning Bitcoin, restricting the asset from being counted as part of the national treasury.

Still, there is plenty of incentive for countries to start holding Bitcoin, especially as asset prices continue to hover around Bitcoin's price. The highest price ever was $108,000.the report shows.

“We may be at the dawn of a new era of digital assets, one that is poised to last for years, if not decades,” Hogan said in the report. I mentioned it inside.

Edited by Sebastian Sinclair