Brazilian neobank Nubank has introduced a fixed 4% annual return for users holding the USDC stablecoin in their crypto wallets. The largest digital bank in Latin America, which serves over 85 million customers across Brazil and 6 million in Mexico and Colombia, launched the feature after testing it with a select group of users.
To qualify for the return, customers need to hold a minimum of 10 USDC in their wallets, with returns credited daily. The feature can be activated or deactivated at any time through the Nubank app, and users can access their funds instantly. The neobank chose USDC for its growing popularity, with the stablecoin making up 30% of crypto users’ portfolios and more than half of new Nubank Crypto users selecting it as their first digital asset.
Nubank continues to expand its crypto offerings, including a recent addition of a crypto swap tool for trading popular digital assets like Bitcoin, Ethereum, Solana, and Uniswap for USDC. However, not all of the bank’s crypto initiatives have gone smoothly, as seen with the abrupt halt of its Nucoin token trading in September 2024 to protect users from market volatility.
The Bank of England (BoE) has announced plans to launch a new initiative called the “Digital Pound Lab” in 2025, aimed at testing the potential for a central bank digital currency (CBDC), commonly known as a digital pound. This sandbox project will focus on developing blockchain-powered payment systems and exploring use cases and business models for a digital currency. The BoE aims to collaborate with both local and international financial players to address challenges in the current payment ecosystem.
Despite the initiative, no final decision has been made regarding the introduction of a digital pound. The BoE’s report clarified that the central bank and HM Treasury will first work on developing a detailed policy and technology framework, based on feedback gathered during the design phase. The process could take several years before any conclusions are drawn.
The BoE has closed its previous Technology Forum to make way for the Digital Pound Lab, which will take a more active, hands-on approach to consulting with industry participants. However, even if the lab progresses, the digital pound would still require approval from the UK Parliament, followed by public consultation and legislation before any official rollout.
Thailand’s Securities and Exchange Commission (SEC) is considering approving exchange-traded funds (ETFs) that invest directly in Bitcoin, aiming to expand its growing cryptocurrency market. This decision, reported on 15 January, reflects Thailand’s efforts to keep pace with nations like Singapore, Hong Kong, and the US, which are advancing in cryptocurrency regulation and innovation.
The move comes as the country experiences a surge in crypto trading activity. As of November 2024, active trading accounts more than doubled to 270,000 compared to the previous month. Acknowledging the sector’s importance, SEC Secretary-General Pornanong Budsaratragoon stated that the goal is to provide investors with diverse crypto options under proper regulatory protections.
Thailand is also exploring broader crypto adoption initiatives. Alongside potential Bitcoin ETFs, the SEC is evaluating the issuance of stablecoins backed by corporate bonds to improve access to debt markets. Meanwhile, the government continues to tackle illegal operations, such as the recent closure of an unauthorised Bitcoin mining farm in Chonburi.
In addition, a pilot project proposed by former Prime Minister Thaksin Shinawatra aims to introduce Bitcoin payments in Phuket, particularly for tourists. With such developments, Thailand hopes to position itself as a leading hub in the Asia-Pacific region for crypto innovation.
Intesa Sanpaolo, Italy’s largest bank, has made headlines by purchasing 11 Bitcoins for €1 million, marking a significant step in the nation’s financial history. The investment makes it the first Italian bank to directly acquire cryptocurrency, setting a potential precedent for others in the country’s financial sector.
Confirmation of the purchase came after an internal email from the bank was leaked online, reportedly signed by Niccolò Bardoscia, head of its Trading and Investment division for Digital Assets. However, the bank has refrained from commenting on its motivations or whether this move signals a broader strategy involving digital assets.
This investment aligns with the bank’s ongoing exploration of blockchain technologies. Intesa Sanpaolo previously underwrote a €25 million blockchain bond in July 2024 and introduced cryptocurrency spot trading last November. As global institutions increasingly embrace Bitcoin, this move solidifies the bank’s role as a leader in digital asset adoption within Europe.
Tether, the leading stablecoin issuer, has announced plans to establish its headquarters in El Salvador, making it the company’s first physical base. CEO Paolo Ardoino confirmed that he, along with the company’s cofounders, will also move their residences to the Central American nation. This decision follows Tether’s licensing as a digital asset service provider in the country.
While most of Tether’s staff will remain remote, the firm aims to hire 100 Salvadorans over the next few years. El Salvador has positioned itself as a hub for cryptocurrency innovation since adopting Bitcoin as legal tender in 2021. President Nayib Bukele welcomed Tether’s decision, further cementing the nation’s role in global crypto adoption.
Tether’s USDT stablecoin accounts for two-thirds of the $212 billion stablecoin market, but regulatory scrutiny around stablecoins remains high. The company claims its reserves are primarily held with Wall Street firm Cantor Fitzgerald, as questions about transparency persist. Tether’s move to El Salvador signals its confidence in the country’s supportive crypto ecosystem amid growing global interest in digital assets.
Ming Shing Group, a construction firm based in Hong Kong, has made a $47 million investment in Bitcoin, purchasing 500 BTC at an average price of $94,375 per coin. The investment, made through its subsidiary Lead Benefit, is intended as a short-term strategy to enhance liquidity and asset value using idle company reserves.
Wenjin Li, director of Ming Shing, stated that the firm sees the Bitcoin market as highly liquid, allowing for quick asset disposal if needed for operational purposes. The announcement boosted Ming Shing’s Nasdaq-listed shares by 10%, closing at $7.91.
The move aligns with Hong Kong‘s growing interest in cryptocurrency adoption. Legislator Wu Jiexhuang recently suggested incorporating Bitcoin into the region’s national reserves to enhance financial security, further underscoring the city’s commitment to exploring digital asset opportunities.
The New York Department of Financial Services (NYDFS) has unveiled a Transatlantic Regulatory Exchange programme, fostering collaboration with the Bank of England to advance oversight of digital assets and emerging payment systems. This initiative will facilitate a six-month staff exchange starting February, aiming to enhance regulatory alignment and share expertise.
NYDFS Superintendent Adrienne Harris, who has led the regulator since 2022, emphasised the importance of the programme for global harmonisation in digital asset regulation. The department, renowned for its 2015 BitLicense scheme, views this partnership as a step towards strengthening crypto oversight.
The UK and US differ significantly in their approaches to digital currencies. The Bank of England continues exploring a central bank digital currency, while the US administration resists a government-backed digital dollar. With such exchanges, both regulators hope to gain deeper insights into navigating the challenges of the crypto landscape.
MicroStrategy Inc. has bolstered its position as a Bitcoin powerhouse, purchasing $243 million worth of the cryptocurrency in its 10th consecutive weekly acquisition. The company, based in Virginia, now controls over 2% of Bitcoin’s finite supply, continuing a strategy initiated by co-founder and Chairman Michael Saylor in 2020.
The firm acquired 2,530 Bitcoin between 6 and 12 January at an average price of $95,972 per token, according to a regulatory filing. With plans to raise $42 billion in capital by 2027 through stock sales and debt offerings, MicroStrategy intends to invest heavily in Bitcoin. It has already reached two-thirds of its equity-raising goals in just a few months and could potentially purchase an additional $6.5 billion in Bitcoin.
MicroStrategy’s shares have risen 13% this year, closing at $327.91 last week, while Bitcoin itself has experienced a slight dip, losing 3% in value after a 120% surge in 2024. The firm’s approach has drawn attention from hedge funds employing convertible arbitrage strategies, betting on the volatility of MicroStrategy’s stock as the company advances plans to expand its equity offerings.
Russia’s crypto mining industry is experiencing unprecedented growth, with demand for industrial equipment tripling in the last quarter of 2024 compared to the previous year. The boom follows new laws introduced by President Vladimir Putin, effective November 2024, permitting businesses and entrepreneurs to mine crypto after registering in the national miners’ registry. Individual miners using under 6,000 kWh of energy monthly are exempt from registration, ensuring flexibility for smaller operations.
Experts highlight that these regulatory changes have made mining more credible and economically viable, attracting both large-scale operators and individual investors. However, rapid growth has prompted the government to draft restrictions, including a proposed mining ban in energy-stressed regions such as Dagestan and Chechnya, starting in January 2025. These measures aim to manage electricity shortages and price disparities in subsidised areas.
Additionally, Russia introduced a 15% tax on Bitcoin mining profits in November 2024, marking the sector as a regulated economic contributor. Despite these challenges, industry leaders suggest mining remains a solid diversification strategy, recommending investors allocate up to 5% of their portfolios to this burgeoning field.
Kenya is taking decisive steps to regulate cryptocurrencies as the government shifts its stance from cautious warnings to a more structured approach. Treasury Cabinet Secretary John Mbadi has confirmed plans to introduce a legal and regulatory framework aimed at fostering a fair and stable crypto market. This move is outlined in the ‘National Policy on Virtual Assets and Virtual Asset Service Providers,’ a draft proposal open for public feedback until 24 January.
The policy proposes comprehensive regulations for virtual assets, addressing key concerns such as money laundering, terrorism financing, and consumer protection. It aims to establish clear standards and procedures to govern virtual asset service providers, setting Kenya on a path similar to other African nations like South Africa and Nigeria, which have embraced crypto regulation.
Kenya’s cautious journey with cryptocurrencies dates back to a 2015 warning by the Central Bank of Kenya (CBK), highlighting risks like fraud and lack of legal safeguards. However, a significant shift occurred in September 2023 when the country completed an assessment of money laundering risks tied to virtual assets. With stablecoins accounting for nearly half of the region’s transaction volume, Kenya’s proactive regulatory approach could solidify its role as a leader in sub-Saharan Africa’s crypto adoption landscape.
