According to a report According to Fidelity Digital Assets, the growing adoption of bitcoin (btc) by nation-states and governments will be one of the main factors driving the growth of the leading cryptocurrency in 2025. The report notes that 2025 will be a pivotal year for the adoption of btc.
Adoption by the nation-state to generalize bitcoin
bitcoin adoption saw significant strides in 2024, ranging from the approval of the first US spot btc exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) earlier in the year , to speculation about a possible strategic reserve of bitcoin after the pro-crypto presidential candidate Donald Trump's victory in the November elections.
A new report from Fidelity Digital Assets, titled “2025 Look Ahead,” suggests that now that both retail and institutional investors can gain exposure to btc through ETFs, the next wave of adoption will likely come from nation-states. The report states:
We hope that 2025 will be the year this changes both in terms of acceptance and adoption. That is, we anticipate that more nation-states, central banks, sovereign wealth funds, and government treasuries will seek to establish strategic positions in bitcoin. Perhaps these establishments will take note of the playbook employed by Bhutan and El Salvador, and the substantial returns they have been able to obtain from such positions in a relatively short period of time.
In essence, the adoption of btc by governments and nation-states around the world could become the key driver that propels the leading digital asset towards greater mainstream acceptance in 2025. According to Matt Hogan, research analyst at Fidelity Digital Assets , nations may risk losing more by not allocating to btc than by making the investment.
Hogan highlighted factors such as high inflation, currency devaluation, and rising fiscal deficits, which could make a lack of investment in btc a costly missed opportunity for countries around the world.
The analyst also referred to the bitcoin Act of 2024, introduced by US Senator Cynthia Lummis, which defenders for the establishment of a national strategic reserve of btc. It remains uncertain whether Donald Trump's administration will implement this plan.
If the bill is enacted, it could trigger political and financial game theory, which could force other nations to follow suit. Interestingly, nation-states that accumulate btc are likely to do so discreetly to avoid influencing more buyers and driving up the price of the asset.
Countries already planning to establish btc reserves
While both El Salvador and Bhutan have already established national btc reserves, other countries are set to join the list. In December 2024, Brazil's federal deputy legislation introduced which seeks to diversify Brazil's National Treasury by gaining some exposure to btc.
Similarly, other countries such as Chili, Canadaand Czech Republic There is speculation that they are considering their own strategic reserves. At press time, btc is trading at $94,190, down 3.4% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
