Fidelity: Sovereign Nations Investing in Bitcoin…

China issued multiple bans throughout the year—the country cracked down on Bitcoin mining in May and effectively banned all cryptocurrency transactions in September. Later in November, it shut down all cryptocurrency mining in the country, completely wiping out a thriving mining ecosystem.

On the other hand, El Salvador took a diametrically different approach. In September, the South American country became the first-ever sovereign nation to make Bitcoin legal tender. As part of its effort to promote Bitcoin, the government also purchased BTC for its reserves. It will also issue a $1 billion Bitcoin bond, half of which will be used to further expand its crypto reserves.

Fidelity believes that China’s effort to ban all things crypto-related will lead to a significant loss of wealth and opportunity. However, it doubts that the country will be able to achieve an outright ban given the decentralized and anonymous nature of digital assets.