Central banks and nation-states are on track to purchase BTC by 2025, according to Fidelity Digital Assets.

Fidelity Digital Assets has projected that 2025 will be a transformative year for Bitcoin adoption, as rising economic pressures push governments and financial institutions toward strategic cryptocurrency allocations.

The report, published by Fidelity Digital Assets, outlines a forecast in which more countries, central banks, sovereign wealth funds, and government treasuries will seek to build Bitcoin positions as a hedge against macroeconomic risks. Analyst Matt Hogan pointed out, “With inflation surging, currency devaluation accelerating, and fiscal deficits widening, strategically adding Bitcoin to reserves may soon be seen as less risky than not having any exposure.”

Fidelity also noted the vocal support for Bitcoin from key political figures, including President-elect Donald Trump and Senator Cynthia Lummis, who have both advocated for the creation of a U.S. Bitcoin reserve. While it remains unclear whether these plans will materialize in 2025, the report emphasized the potential global implications if the U.S. leads in Bitcoin accumulation.

Lummis’ proposed “Bitcoin Act of 2024,” which aims to provide a legislative framework for incorporating Bitcoin into government reserves, could trigger a ripple effect across other nations, Fidelity suggested. If passed, the bill would create a scenario in which geopolitical and financial competition would encourage other countries to adopt similar strategies.

Fidelity further speculated that nations adopting Bitcoin reserves would likely do so discreetly to avoid market manipulation. Announcing large purchases publicly would likely drive up the price due to market speculation, leading to higher acquisition costs.

Currently, the largest government Bitcoin holders include the U.S., China, the U.K., Ukraine, Bhutan, and El Salvador. Fidelity’s report notes, however, that many of these holdings have been obtained via government seizures or the recovery of criminal-linked Bitcoin, rather than through strategic accumulation.