Fidelity predicted the purchase of Bitcoin by states

Fidelity has published a report on cryptocurrency trends for 2022 and the outlook for the industry. Experts consider the main trend of this year to be the adoption of cryptocurrency at the state level.

Over the past two years, the main trend in the market has been the adoption of cryptocurrency by institutional investors. Digital assets have officially entered the legislative and political arena. This year, governments will be forced to decide on their attitude towards crypto assets.

Governments around the world have taken various major steps towards digital assets in 2021, demonstrating different approaches. 

The Fidelity report examines two opposing positions between China and El Salvador. Only time can determine the correctness of the policy chosen by the countries, but the authors of the document note:

A complete ban on cryptocurrency is unlikely. It will lead to a significant loss of opportunity and wealth.

According to analysts, there is now a “high-stakes game theory” in the crypto industry. If Bitcoin holds, the countries that currently own the asset will be in a better position. Lagging governments will be forced to purchase the first cryptocurrency as a form of insurance. Therefore, states can rush to purchase Bitcoin today, hedging future costs.

Developing countries with a high percentage of dependence on cross-border transfers will be the first to legalize Bitcoin. Thus, Tongo is considering the possibility of investing $750 million of budget funds in Bitcoin.

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