From Cointelegraph

May 4, 2025 11:00 am:

Bitcoin is gaining recognition as a government-backed reserve asset, with the US Federal Reserve establishing a Strategic Bitcoin Reserve. This shift towards treating Bitcoin as a national store of value is reshaping blockchain development and institutional adoption. As governments and institutions secure Bitcoin like gold, the demand for specialized developers for institutional-grade security rises.

Governments worldwide hold 471,000 BTC worth over $16.3 billion in sovereign reserves, affirming Bitcoin’s legitimacy within the international financial system. However, this institutional recognition also challenges Bitcoin’s disruptive nature by conforming it to traditional systems. The changing developer landscape sees a decline in the total number of developers in the industry, with a focus on experienced builders contributing to the industry’s output.

Bitcoin’s integration into institutional finance is driving the development focus towards durability, compliance, and security. While Bitcoin DeFi has unlocked open finance opportunities, its future depends on compliance and regulatory frameworks. Developers may seek to bridge Bitcoin’s liquidity to more operable chains if governments push for traditional financial models, potentially impacting innovation within the community.

As Bitcoin faces institutional oversight, the question is not whether it can support innovation but whether it can thrive in a world seeking to contain it. The community’s ability to preserve Bitcoin’s core offering as a borderless and decentralized currency will determine its future under institutional influence.

Read more at Cointelegraph: Is this the end of Bitcoin DeFi?