Fidelity Digital Assets Institutional Investor Survey also found that 71% of US and European institutional investors surveyed plans to allocate to digital assets in the future at an institutional level.
Fidelity Digital Assets has released a new report which states that countries that get aboard the Bitcoin bandwagon now, will be better off their peers in the years to come. The report from the financial services giant claims that the institutional interest in Bitcoin looks set to continue and even expand to an international level between countries. The report added that early adopters of the digital coin are poised to reap its enormous benefits.
The newly released report by Fidelity also highlighted the contrasting results of China’s continuous crackdown on bitcoin throughout 2021 to El Salvador taking the “opposite approach” by adopting the digital coin as legal tender in-country.
“This past year saw some major moves by world governments with regards to digital assets. We think the two developments observed this year couldn’t be more opposed. Time will certainly tell which path is more successful,” Fidelity stated.
Fidelity revealed in the report that, despite the numerous sanctions and strict approaches taken by many countries around the globe, Bitcoin’s adoption will continue to grow stating that there are no ‘outright bans’ on the table.
“An outright ban will be difficult to achieve at best, and if successful, will lead to a significant loss of wealth and opportunity,” the report stated.
The authors of the reports however argued that as more countries adopt bitcoin, other countries may be forced to do so even if it does not align with their targets or policies. Fidelity also stated that countries could also be forced to adopt digital assets as a form of insurance regardless of their stance on cryptocurrencies.
“We also think there is very high stakes game theory at play here, whereby if bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers,” the report read.
Although Fidelity’s report claimed that 2020 and 2021 were the years’ Bitcoin adoption gained ground, it described 2022 as the year which might kickstart the era of adoption of bitcoin by sovereigns.
Fidelity Digital Assets Institutional Investor Survey also found that 71% of US and European institutional investors surveyed plans to allocate to digital assets in the future at an institutional level. “In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost year in the future,” the report said.
Fidelity also stated that they expect more sovereign nation-states to acquire Bitcoin this year to capitalize on this early adoption. Fidelity pointed to new regulations, including the US infrastructure bill passed last November, that will help validate the status of cryptos as a legitimate asset class.
Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.
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