Bitcoin might be flirting with $92K again, but governments around the world aren’t playing hard to get — they’re rethinking crypto and making moves that could set the stage for a long-term rally.
Countries, central banks and even sovereign wealth funds are doubling down on crypto adoption or at least shaking off reputations of having unclear rules.
According to Fidelity, one of the world’s biggest asset managers, this is a trend that will not slow down. In its latest report, the asset manager predicts more countries will stack Bitcoin in their reserves, following Bhutan and El Salvador’s lead.
The rationale? Sitting out the crypto game might be riskier than joining it, especially in a world increasingly wrecked by inflation.
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Bhutan’s Binance play
Bhutan isn’t just dabbling in Bitcoin; it’s going all in. Already holding more than $1 billion in BTC and $2 million in Ether, the country’s been mining Bitcoin since 2019 using hydropower.
Now it’s taking it up a notch with plans to set up strategic reserve comprising BTC, Ether and BNB, the cryptocurrency native to Binance.
Binance’s co-founder, Changpeng Zhao, could not resist chiming in: “This is not just a Bitcoin reserve but a crypto one… and it sure won’t be the last.”
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Czechs, Thais, and Koreans join the party
Ales Michl, the governor of the Czech Republic’s central bank, told local media that he’s open to considering Bitcoin as part of the bank’s reserve diversification strategy.
No official decisions yet, though, as Michl is only one of seven on the bank’s board.
Meanwhile, Thailand will pilot a project in popular beach destination Phuket to allow tourists to pay for goods and services in Bitcoin.
Over in South Korea, the country’s top financial regulator, the Financial Services Commission, said it plans to lift restrictions on corporations — starting with non-profit organizations and gradually expanding to for-profit institutions — trading crypto.
Kazakhstan, where Bitcoin mining was big until politics interrupted, shut down 36 unlicensed crypto exchanges. The crackdown is part of a money-laundering cleanup, but it might pave the way for clearer rules and legit players.
Read more: Trudeau out, Trump in: Bitcoin is loving it
Stateside moves
Days before Donald Trump returns to the White House, with his promise not to touch America’s Bitcoin stash, a court cleared the way for Joe Biden’s team to sell $6 billion worth of Silk Road-seized BTC.
There’s no official word from the department of justice about selling the Bitcoin stash, but remember when Germany dumped 50K Bitcoin last year? Prices nosedived from $70K to $55K. While the market’s already nervy at $92K, this could rattle investors further.
So, should you be worried?
Not really. Sure, Biden’s Bitcoin stash could spook the market, but with countries doubling down on adoption and the likes of Fidelity predicting more reserve allocations, the stars might just be aligning for crypto.
Edited by Amitoj Singh and Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
