Fidelity wants sovereign states and central banks to acquire Bitcoin, citing very high-stakes game theory.
Fidelity needs sovereign nation-states or even central banks to acquire Bitcoin this year. The firm explained that high-stakes game theory is at play, according to which if Bitcoin adoption increases, countries that secure some Bitcoin today will be better competitive than their peers.
Fidelity Digital Assets, a subsidiary of Fidelity Investments, released a report on cryptocurrency trends and their possible future impact earlier this month. Among the trends discussed is the adoption of cryptocurrencies by sovereign nations.
Fidelity explained that some vital moves by the governments regarding digital assets worldwide took effect in the past year. The report looks at countries like China that banned cryptocurrencies and El Salvador, which took the opposite approach and made BTC legal tender.
The authors opined in his report that they believe that the two developments have seen this year could not be more opposite. According to the author, time will tell which path is more successful. However, Fidelity noted that an outright ban will be hard to achieve at best and, if successful, will lead to significant loss of wealth and opportunity.
The authors kept saying that there is a high-stakes game theory at play. Countries with some Bitcoin would spot a better competitive position than their peers.
Therefore, even if other countries do not believe in the investment or adoption thesis of Bitcoin, they will be forced to acquire some as a form of insurance.
Fidelity clarified that users may pay a small cost today for coverage compared to a potentially much higher price in the future. They concluded by saying that they would not be surprised to see other sovereign nation-states acquire Bitcoin in 2022 and perhaps even see a central bank make an acquisition.
Fidelity Will Operate as Bitcoin Custodian in Canada
This information got indicated by many reports, highlighting that the Investment Industry Regulatory Organization of Canada (IIROC) officially approved Fidelity in the country to launch a new platform for Bitcoin trading and custody.
This new platform will also provide services to entities such as pension funds, wallet managers, mutual funds, and ETFs that want greater exposure to digital currency.
In this regard, the president of Fidelity Clearing Canada, Scott Mackenzie, commented that demand for investment in digital assets is growing sharply, and institutional investors have been looking for a regulated dealer platform to access this type of assets.
More Canada Picks
The announcement is especially beneficial for the Bitcoin ecosystem in Canada since most of the local companies that operate with digital currency find it necessary to work with custodians based in the United States.
Fidelity offerings and services in the area would help companies based in the country to operate within the said country. These offerings are also paving the way for more institutional investors to approach the cryptocurrency market.
By: Jenson Nuñez
