Fidelity Digital Assets in its latest research report has predicted that countries may begin to include Bitcoin in their national strategic reserves by 2025, which will drive strong growth in the crypto market.
Matt Hogan, research analyst at Fidelity Digital Assets, stated in the "2025 Look Ahead" report:
"We anticipate that many countries, central banks, sovereign wealth funds, and government treasuries will seek to establish strategic positions in Bit."
Hogan also noted that these entities may look to the strategies of Bhutan and El Salvador, and the significant profits these two countries have reaped from holding Bit over a relatively short period.
According to him, not participating in the Bit market could become a major risk for countries, especially when facing challenges such as rising inflation, currency depreciation, and increasingly severe fiscal deficits.
If the United States continues with its strategic Bit reserve plans, Hogan believes "it is very likely that countries will begin to accumulate Bit secretly."
"No country has an incentive to publicly disclose these plans, as doing so could attract more buyers and drive up the value of Bit."
Hogan also predicts that financial products related to digital assets will become "mainstream" by 2025. He emphasized that "the success of these products cannot be underestimated", particularly with the development of Bit and Ether ETFs.
"With the early successes of these products, it is unsurprising to expect that by 2025, the digital asset market will witness the emergence of many more passive and active management products, with clearer structures, and tighter integration with the traditional financial (TradFi) world," Hogan stated.
Additionally, he also predicts that tokenization will be a "breakthrough application" in 2025, with on-chain transaction volume expected to double from $14 billion to $30 billion by the end of the year.
"Tokenization is still a new term in the blockchain technology space, but its potential in financial services and many other areas is just beginning to be recognized," he shared.
Fidelity's researchers believe that investors need to "accelerate their pace" to keep up with the rapid increase in the adoption, development, interest, and demand for digital assets.
They assert that "investors are not too late to join the digital asset movement" and believe that "we may be entering a new era for digital assets, one that could last for years – if not decades."
Gelephu Mindfulness City (GMC), Bhutan's new administrative special zone, today announced its official plan to recognize digital assets, including Bit (BTC), Ether (ETH), and BNB, as part of its strategic reserves. With this decision, GMC becomes one of the first legal jurisdictions to officially recognize and integrate digital assets into its strategic reserves, marking an important step in solidifying this legal jurisdiction's participation in Bit mining activities.
To ensure liquidity and stable trading, GMC will only recognize digital assets with large market capitalizations and deep liquidity, ensuring they can be bought and sold easily with minimal Price Impact. Additionally, GMC will prioritize recognizing digital assets issued on secure, mature blockchains capable of supporting on-chain monitoring and control of transactions.
With its strategic geographic location, situated on the bridge connecting the rapidly developing economies of South Asia, GMC has the potential to serve over two billion people in the region. One of GMC's key economic objectives is to promote and support the use of blockchain technology, aligning with the Special Administrative Zone's orientation towards innovation and pioneering the application of new technologies.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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