Privately held investment firm Fidelity says that this year is likely to be a “game changer” when it comes to the acceptance and adoption of Bitcoin (BTC).
In a research report, Fidelity Digital Assets says, “More nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin.”
Fidelity goes on to say that, given macro-economic headwinds such as inflation, currency debasement, and government deficits, not acquiring Bitcoin could be riskier than buying the largest cryptocurrency by market capitalization.
Fidelity notes that U.S. president-elect Donald Trump continues to champion a strategic Bitcoin reserve for America, but said it remains to be seen if that plan happens.
However, if the U.S. does establish a strategic Bitcoin reserve, other nations are likely to follow suit, says Fidelity.
Additionally, Fidelity says that central banks around the world continue to look at digital currencies and are exploring the possibility of accumulating cryptocurrencies.
The U.S., China and United Kingdom are currently the largest government holders of Bitcoin, notes Fidelity in its report, with most of those holdings coming from government seizures of digital assets used in criminal activities.
Bitcoin is currently trading at $95,350 U.S.
