ECB Rejects Bitcoin—Who’s Buying Instead?

Fidelity Digital Assets recently published a report predicting more nation-states, central banks, and sovereign wealth funds will establish strategic Bitcoin reserves. Countries, including Russia, Brazil, and Poland are called out in the report but it is suggested that governments may choose to buy discreetly to avoid influencing prices.

Last week, ECB President Christine Lagarde ruled out adding Bitcoin to European reserves, citing its volatility. In the U.S., more than a dozen state-level discussions are gaining traction, especially after Donald Trump signed an executive order assembling a team to explore a national Bitcoin stockpile.

El Salvador has led the way, holding nearly 6,000 BTC, now worth over $550 million. On Jan. 20, its Bitcoin Office announced the addition of another 11 BTC to its Strategic Bitcoin Reserve.