A new report released by Fidelity Assets on Tuesday (07) indicates that countries and central banks around the world are preparing to establish or expand their positions in Bitcoin (BTC), the largest cryptocurrency on the market.
We anticipate more nation states, central banks, sovereign wealth funds and government treasuries will seek to establish strategic positions in bitcoin, analyst Matt Hogan wrote.
In particular, the report points out that in unfavorable macroeconomic scenarios, such as high inflation and currency devaluation, not investing in Bitcoin can become riskier. On the other hand, allocating resources to the cryptocurrency is a safer option.
Political figures such as US President-elect Donald Trump and Senator Cynthia Lummis have publicly discussed creating a strategic Bitcoin reserve. Fidelity, however, is still uncertain whether these plans will come to fruition by 2025.
In July, Lummis proposed the Bitcoin Act of 2024 to the Senate. If passed, the bill could set an important precedent for other countries to adopt similar strategies. Fidelity suggests that if countries decide to accumulate Bitcoin, they will likely start their purchases discreetly, avoiding driving up the price with public announcements.
Currently, the United States, China, the United Kingdom, Ukraine, Bhutan, and El Salvador hold the most Bitcoin in government hands. It is worth noting that many of these assets were acquired through seizures related to illicit activities.
Bitcoin reserves in Brazil are still in their infancy
In Brazil, in regulatory terms, there are initiatives such as Law 14,478/22, which establishes guidelines for the regulation and provision of virtual asset services.
The text originates from the project (PL 4401/21) by deputy Aureo Ribeiro (Solidariedade-RJ), approved in the Chamber of Deputies and in the Senate.
However, Bitcoin as a strategic asset in Brazil still faces resistance. In 2024, Congressman Eros Biondini (PL-MG) proposed the creation of a sovereign Bitcoin (BTC) reserve, with a limit of up to 5% of international reserves.
The objective is, firstly, to diversify the financial assets of the National Treasury. In addition, the proposal aims to protect foreign currency assets against exchange rate and geopolitical risks.
This bill is the beginning of a historic transformation. But to pass it, I need your support. The future of our country can be stronger and more sovereign. And that future starts now, with Bitcoin, said the parliamentarian.
What the Central Bank thinks
For the director of International Affairs and Corporate Risk Management at the Central Bank (BC), Paulo Picchetti, there is no intention by the BC to add BTC to the country's reserves.
According to him, the BC's strategy takes into account a strict risk and return policy. Therefore, this means adopting a conservative profile and, consequently, BTC, due to its high volatility, does not fit within this strategy.
photo: reproduction Youtube/ Central Bank of Brazil
Bitcoin certainly does not fit into the basket of applications due to the historical volatility performance that we know it has, he said when asked during LiveBC about international reserves management in April last year.
At that time, Picchetti stated that Brazil's reserves were distributed as follows: 79.99% in US dollars, 5.24% in euros, 4.80% in renminbi, 3.58% in pounds sterling, 2.60% in gold, 1.80% in yen, 1.01% in Canadian dollars and 0.9% in Australian dollars.
The article Report predicts countries buying BTC in 2025; Brazil has resistance appeared first on BeInCrypto Brazil.
