Bitcoin (BTC) Adoption by Governments and Nation-States To Become the Key Driver in 2025, Fidelity Digital Assets Predicts

According to a report by Fidelity Digital Assets, the rising nation-state and government adoption of Bitcoin (BTC) will be one of the major factors driving the premier cryptocurrency's growth in 2025.

Bitcoin (BTC) adoption by nation-states and governments will be a major factor driving the cryptocurrency’s growth in 2025, according to a report by Fidelity Digital Assets.

2025 will be a pivotal year for BTC adoption, the report notes.

2024 saw significant developments in Bitcoin adoption, ranging from the approval of the first US spot BTC exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) early in the year, to speculations about a potential strategic Bitcoin reserve following pro-crypto presidential candidate Donald Trump’s victory in the November election.

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, according to a new report by Fidelity Digital Assets, titled “2025 Look Ahead.”

“We expect 2025 to be the year this changes for both acceptance and adoption,” the report states. “This is to say, we anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in bitcoin.”

Perhaps these establishments will take notice of the playbook employed by Bhutan and El Salvador, and the substantial returns they have been able to glean from such positions in a relatively short amount of time.

Crucially, BTC adoption by governments and nation-states worldwide could become the key driver that propels the premier digital asset further into 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 pointed to factors such as high inflation, currency debasement, and widening fiscal deficits, which could make a lack of investment in BTC a costly missed opportunity for countries globally.

The analyst also noted the Bitcoin Act of 2024, introduced by US Senator Cynthia Lummis, which advocates for the establishment of a national strategic BTC reserve.

Whether the Donald Trump administration will pursue this plan remains uncertain.

If the bill is enacted, it could trigger political and financial game theory, potentially forcing other nations to follow suit.

Interestingly, nation-states accumulating BTC are likely to do so discreetly to avoid influencing more buyers and driving up the asset’s price.

While both El Salvador and Bhutan have already established national BTC reserves, other countries are poised to join the list.

In December 2024, Brazil’s federal deputy introduced legislation that seeks to diversify Brazil’s National Treasury by gaining some exposure to BTC.

Similarly, other countries like Chile, Canada, and Czech Republic are speculated to be considering their own strategic reserves.

At press time, BTC trades at $94,190, down 3.4% in the past 24 hours.