Parties vying for power in Germany’s February 23 election have outlined diverging financial policies that could affect banking, taxation and cryptocurrency regulation. The conservative CDU/CSU alliance, leading in the polls, aims to strengthen Germany’s position as a financial hub, favouring tax incentives for start-ups and venture capital. Plans also include preserving the three-pillar banking system and increasing tax-free allowances while opposing a wealth tax.
The far-right Alternative for Germany (AfD), running second, proposes the most radical changes, calling for Germany to exit the euro and return to the Deutsche mark backed by gold. Advocating deregulation of Bitcoin and cryptocurrency trading, the party also opposes a digital euro and supports abolishing both the inheritance tax and wealth tax. Mainstream parties refuse to work with AfD, making its proposals unlikely to become policy.
Chancellor Olaf Scholz’s Social Democrats (SPD), currently trailing, pledge to tax the super rich and introduce a financial transaction tax. Plans also include reinstating the wealth tax and adjusting inheritance tax to increase contributions from multi-million and billion-euro estates. The Greens align with SPD on higher taxation for the wealthy and propose stricter cryptocurrency oversight, enhanced financial transparency and stronger sustainability regulations.
Polls indicate a potential shift in Germany’s financial landscape, with taxation, cryptocurrency policy and the country’s role in European finance among key issues shaping the election.
El Salvador has reversed its historic decision to make Bitcoin legal tender, following pressure from the International Monetary Fund (IMF). The law, enacted in 2021, required all businesses to accept Bitcoin alongside the US dollar, but many merchants struggled to adopt it. Widespread scepticism, technical issues, and Bitcoin’s volatility made it unpopular among the majority of Salvadorans.
While the policy brought some benefits, such as increased tourism and global attention, it failed to boost financial inclusion or significantly improve the economy. Reports show that by 2024, 92% of Salvadorans did not use Bitcoin for transactions, and only a small percentage of businesses accepted it. The Chivo wallet, launched to facilitate transactions, faced hacking incidents and technical difficulties, further eroding public trust.
The shift away from Bitcoin came after the IMF made it a condition for a $1.4 billion loan. El Salvador’s Congress agreed to remove Bitcoin’s legal tender status, ensuring that the government and businesses would no longer be required to accept it. However, Bitcoin remains legal for private trade, and the government has continued purchasing it, signalling an ongoing interest in cryptocurrency despite the policy change.
El Salvador has made another significant addition to its Bitcoin reserve, purchasing 12 BTC in just one day, as the cryptocurrency market saw a dip. The Central American country bought 11 Bitcoin for just over $1.1 million, with an average price of $101,816 per Bitcoin on 4 February. It later added one more BTC at $99,114, bringing its total Bitcoin holdings to 6,068 BTC, valued at over $554 million.
Despite a brief decline in Bitcoin’s price, which fell to around $96,000 before rebounding to approximately $98,000, El Salvador’s commitment to its Bitcoin strategy remains steadfast. The country’s Bitcoin Office proudly announced that El Salvador has accumulated 21 BTC in just one week and 60 BTC in the last 30 days, reinforcing the growth of its Strategic Bitcoin Reserve.
This latest round of Bitcoin purchases comes after President Nayib Bukele’s agreement with the International Monetary Fund (IMF) last month, where his government made adjustments to its Bitcoin policies. These included making Bitcoin adoption in the private sector voluntary and scaling back government involvement in the Chivo crypto wallet. However, the country’s commitment to acquiring Bitcoin remains unchanged, with further purchases planned for 2025.
Despite the IMF agreement, the government has shown no signs of abandoning its Bitcoin ambitions, continuing to buy Bitcoin even after the deal was struck. The country’s Bitcoin plans are expected to intensify, with El Salvador positioning itself as a global leader in Bitcoin adoption.
Tether, the world’s largest stablecoin issuer, is diving deeper into the world of artificial intelligence (AI) with several new applications in development. Tether Data, the company’s AI division, is working on a range of tools including AI Translate, AI Voice Assistant, and AI Bitcoin Wallet Assistant. These apps will focus on maintaining the privacy and self-custodial control over both data and money, according to CEO Paolo Ardoino.
The AI Bitcoin Wallet Assistant will allow users to interact with a chatbot interface to manage their BTC wallet, such as checking their balance or making transactions. Meanwhile, the AI Translate tool provides simple chatbot-based translation, and the AI Voice Assistant will enable voice responses instead of text. Tether plans to launch an open-source AI SDK platform, compatible with various devices including mobile phones and laptops.
Tether’s commitment to AI growth has been evident since 2023, with the company acquiring a stake in Northern Data Group, a European crypto miner specialising in cloud computing and generative AI. The firm also began a global recruitment drive for AI talent in March 2023, intending to innovate and set new industry standards.
The firm has been making significant strides in both the AI and crypto industries, as it reported record profits of $13 billion for 2024, and its USDT stablecoin has seen an all-time high market capitalisation of $141 billion. Tether’s AI platform is expected to launch by the end of Q1 2025.
The European Central Bank (ECB) is keen to accelerate the creation of the digital euro, particularly following US President Donald Trump’s endorsement of stablecoins linked to the US dollar. ECB board member Piero Cipollone highlighted that Trump’s backing could push European lawmakers to fast-track the legislation for the digital euro. The ECB envisions the digital euro as a central bank-backed online wallet, offering an alternative to major US payment providers like Visa and PayPal.
Despite the European Commission’s proposal for digital euro legislation in June 2023, progress has been slow due to some scepticism in the political and banking sectors. Cipollone remains optimistic that recent developments, including the rise of US stablecoins, will prompt greater urgency from EU lawmakers. He expressed hope that the digital euro legislation could be finalised by summer, allowing for negotiations with the Commission to be wrapped up before November.
Cipollone also raised concerns over the growing use of US stablecoins in Europe, warning that it could lead to a shift of deposits from European banks to the US. He acknowledged bankers’ fears that a digital euro could have a similar effect. Still, he reassured that the ECB would likely limit the amount of digital euros users can hold to prevent destabilisation. Several countries, including Nigeria and China, have already launched central bank digital currencies, while many others, such as Russia and Brazil, are in the testing phase.
Coinbase has secured approval from the UK’s Financial Conduct Authority (FCA) to operate as a Virtual Asset Service Provider. The milestone allows the exchange to offer both crypto and fiat services in one of its largest international markets, reinforcing its presence beyond the US.
The FCA has strict regulations for digital asset firms, approving only a limited number of applicants. Coinbase’s successful registration highlights its compliance with UK laws and cements its position as the largest registered digital asset provider in the region. This development follows an inquiry into Coinbase Payments over past regulatory breaches, which have now been resolved.
With this approval, Coinbase can legally facilitate cryptocurrency transactions for retail and institutional clients in the UK. The exchange continues to expand globally, having recently launched services in Argentina and reinstated Bitcoin-backed loans in the US. Coinbase aims to accelerate crypto adoption worldwide, positioning itself as a key player in the digital asset revolution.
Kaspersky Labs has uncovered a dangerous malware hidden in software development kits used to create Android and iOS apps. The malware, known as SparkCat, scans images on infected devices to find crypto wallet recovery phrases, allowing hackers to steal funds without needing passwords. It also targets other sensitive data stored in screenshots, such as passwords and private messages.
The malware uses Google’s ML Kit OCR to extract text from images and has been downloaded around 242,000 times, primarily affecting users in Europe and Asia. It is embedded in dozens of real and fake apps on Google’s Play Store and Apple’s App Store, disguised as analytics modules. Kaspersky’s researchers suspect a supply chain attack or intentional embedding by developers.
While the origin of the malware remains unclear, analysis of its code suggests the developer is fluent in Chinese. Security experts advise users to avoid storing sensitive information in images and to remove any suspicious apps. Google and Apple have yet to respond to the findings.
Senator Bill Hagerty is set to introduce the GENIUS Act, a bill aimed at creating a clear regulatory framework for stablecoins in the US. The legislation is co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis, with a focus on ensuring all stablecoins are backed by US Treasury bills, dollars, and Federal Reserve notes.
The bill follows previous efforts in Parliament to regulate stablecoins, aligning with similar proposals from both the House and Senate. Supporters argue that regulatory clarity is crucial for the rapidly expanding market, with Tether’s USDT and Circle’s USDC currently dominating the sector. Lawmakers believe the move will help position the US as a global leader in cryptocurrency innovation.
A key requirement of the bill is for issuers to conduct and publish monthly audits to ensure transparency and financial stability. Senator Hagerty has pledged to work closely with House Financial Services Committee chair Rep. French Hill to advance the bill, aiming to bring it to President Trump’s desk for approval.
Coinbase is calling on US regulators to remove barriers preventing banks from offering crypto services, urging them to confirm that state-chartered banks can provide and outsource crypto custody and execution. The exchange sent letters to key regulatory bodies, including the Federal Reserve and the FDIC, requesting clear guidance on banks’ ability to work with crypto firms. Coinbase argues that current laws already permit such partnerships, but regulatory uncertainty is stopping banks from fully engaging in the sector.
The request comes amid an ongoing legal battle between Coinbase and US agencies, with the exchange accusing regulators of deliberately blocking banks from serving crypto businesses. Last year, Coinbase sued the SEC and the FDIC over alleged efforts to cut off essential banking services to the industry. Some reports even suggest the FDIC pressured banks to pause their crypto activities, despite institutions such as BNY Mellon moving forward with digital asset custody services.
With Donald Trump now in office, the crypto community is watching closely for potential regulatory shifts. Coinbase, which has been strengthening ties with the new administration, sees this as an opportunity to push for a more open banking environment for crypto firms. The exchange remains a major player in the market, serving as the primary custodian for US-based Bitcoin ETFs.
A bipartisan working group is being established in Congress to develop policies supporting digital assets. Representative French Hill announced the initiative, emphasising the need for clear regulatory guidelines. The group will work alongside White House officials, including crypto and AI adviser David Sacks.
President Donald Trump has ordered a separate cryptocurrency task force to explore regulations and the possibility of a national crypto reserve. Trump has positioned himself as a pro-crypto leader, pledging to promote adoption. In contrast, former President Joe Biden’s administration took a stricter stance, cracking down on exchanges such as Coinbase and Binance over alleged regulatory violations.
Lawmakers and officials are now seeking a balance between fostering innovation and ensuring consumer protection. The growing role of cryptocurrencies in the economy has intensified calls for clearer legislation, with both Congress and the executive branch pushing for new frameworks.
