El Salvador’s Congress has quickly approved a reform to its bitcoin law, aligning it with a recent agreement with the International Monetary Fund (IMF). The amendment, proposed by President Nayib Bukele and passed within minutes, makes bitcoin acceptance voluntary for businesses. Lawmakers from Bukele’s New Ideas Party, who hold a majority in Congress, ensured the bill’s swift passage.
Bitcoin was declared legal tender in El Salvador in 2021 alongside the US dollar, drawing international attention and strengthening Bukele’s reputation as a cryptocurrency advocate. However, an IMF-backed $1.4 billion loan deal, finalised in December, required limits on the government’s bitcoin exposure.
The lender specifically urged El Salvador to make bitcoin acceptance optional for the private sector, a key aspect of the newly approved law.
Ruling party lawmaker Elisa Rosales defended the reform, arguing it would secure bitcoin’s status as legal tender while ensuring its effective implementation. The law passed with 55 votes in favour and only two against.
Bukele’s government remains committed to bitcoin, recently confirming plans to continue acquiring the cryptocurrency for national reserves. Market optimism surrounding cryptocurrency policies under US President Donald Trump has contributed to bitcoin’s rising value.
Kazakhstan is moving to expand its legal crypto operations as President Kassym-Jomart Tokayev calls for urgent reforms. He stressed the need to improve the country’s infrastructure for digital assets, pointing out that most crypto users still operate in a legal grey area. Only around 5% of investors use regulated platforms, while the rest rely on unregistered services.
To address this, Tokayev urged financial regulators to develop a stronger legal framework. Authorities have already intensified their crackdown on illegal platforms, shutting down 36 unlicensed exchanges in 2024 with a total turnover of 60 billion tenge ($112.84 million). Officials have also blocked over 3,500 unregistered trading sites in coordination with the National Security Committee.
With these efforts, Kazakhstan aims to transition from a grey-market hub to a regulated crypto-friendly nation. As global attitudes towards digital assets shift, the country is positioning itself as a key player in the evolving crypto landscape.
Crypto.com will stop supporting Tether’s USDT for European users by 31 January, aligning with the EU’s Markets in Crypto-Assets (MiCA) regulations. The exchange recently secured a MiCA licence in Malta, allowing it to operate across the region, but compliance rules require removing certain non-compliant assets. Alongside Tether, Crypto.com will also delist Dai, Wrapped Bitcoin, Pax Gold, Pax Dollar, and its derivative tokens.
Users have until 31 March to convert these assets to MiCA-compliant alternatives. If not, they will be automatically switched to a stablecoin or asset of similar value. A Crypto.com spokesperson confirmed the decision only applies to EU customers and urged them to take action before the deadline.
This move makes Crypto.com the second major exchange to remove USDT in Europe, following Coinbase’s delisting last year due to MiCA’s stricter stablecoin rules. While Tether has taken steps to align with the new regulations, the future of its $138 billion stablecoin within the EU remains uncertain.
Coinbase has received regulatory approval to operate in Argentina, securing a Virtual Asset Service Provider licence from the National Securities Commission. The approval allows the exchange to offer its services within Argentina’s virtual asset framework, marking a significant step in its global expansion.
With inflation soaring and the local currency struggling, cryptocurrency adoption has surged in Argentina. Around 5 million Argentinians use crypto daily, viewing it as a tool to protect their wealth and access global financial markets. A recent Coinbase survey found that 87% of locals see digital assets as a way to enhance economic independence.
Coinbase’s operations in Argentina will be led by fintech expert Matías Alberti. The company plans to combine trading services with educational initiatives to help users navigate the risks and benefits of crypto. The company has highlighted security and compliance as key priorities, aiming to build trust in a market where financial stability remains a major concern.
French prosecutors have launched a new investigation into Binance, marking the second time authorities have scrutinised the crypto exchange. The probe includes allegations of drug trafficking, money laundering, and tax evasion, with possible additional charges yet to be disclosed. This follows an earlier inquiry in 2023 over suspected financial crimes linked to the platform.
Regulators worldwide have tightened their grip on cryptocurrency firms after the collapse of FTX and other high-profile failures. Binance has faced mounting legal challenges, including a record $4.3 billion settlement with US authorities. Despite leadership changes, including the resignation of founder Changpeng Zhao, the company remains under regulatory pressure.
As Binance navigates legal battles across multiple jurisdictions, its future in key markets remains uncertain. The latest investigation in France adds to the exchange’s ongoing struggles, reinforcing the global crackdown on crypto platforms accused of financial misconduct.
Indian fintech platform Cred, backed by Tiger Global and Peak XV, has become the first payment firm to offer access to India’s central bank digital currency (CBDC), the company announced on Tuesday. The Reserve Bank of India (RBI) began piloting the e-rupee, a digital equivalent to cash, in December 2022, initially limiting access to banks. In April 2024, the RBI expanded eligibility to payment firms, paving the way for wider adoption.
Cred’s e-rupee wallet will initially be available to select users, with YES Bank facilitating the issuance of digital currency tokens. Cred’s founder, Kunal Shah, said the initiative aims to streamline e-rupee transactions and promote adoption among India’s most creditworthy individuals. The company joins a competitive landscape, as major firms like Google Pay, PhonePe, Amazon Pay, and MobiKwik have also sought participation in the pilot.
While the e-rupee saw an initial surge in usage, adoption rates have since slowed, reflecting the challenges central banks face in popularising digital currencies globally. Cred’s involvement marks a significant milestone in advancing the accessibility and usability of India’s digital currency.
Metaplanet, a Tokyo-listed company, has unveiled a bold corporate treasury plan aiming to accumulate 10,000 Bitcoins by the end of 2025 and 21,000 by 2026. The initiative is designed to position the company as one of the world’s largest corporate holders of Bitcoin, with over $180 million worth of assets already in place.
The strategy dubbed the ’21 Million Plan’, involves issuing 21 million shares through moving strike warrants to raise nearly $740 million. This capital raise is set to be one of Asia’s largest bitcoin-focused equity raises. The plan aims to protect shareholder value by setting an exercise price at 100% of the previous day’s closing price, thus avoiding dilution.
Metaplanet has achieved impressive BTC yields, including a 309.82% return for Q4 2024, reinforcing the success of its strategy. The company’s Director of Bitcoin Strategy, Dylan LeClair, emphasised that the firm measures success by bitcoin yield, not fiat currencies. The company’s ultimate goal is to maximise Bitcoin per share for its shareholders, positioning Bitcoin not only as an asset but as an exit strategy.
A Californian company Nuvve, focused on vehicle-to-grid technology, has announced plans to invest up to 30% of its excess cash into Bitcoin. The move is part of the company’s broader strategy to diversify its treasury holdings. The actual amount of Bitcoin purchased will depend on market conditions and the company’s financial needs, according to a press release from 28 January.
In addition to holding Bitcoin, Nuvve intends to accept it as a payment method for both customers and suppliers. It is part of the company’s mission to promote grid electrification and offer more payment options with potentially lower transactional friction.
Nuvve’s decision to incorporate Bitcoin follows a growing trend among public companies, such as Oxbridge Re Holdings, which have added Bitcoin to their treasury reserves. Following the announcement, Nuvve’s shares saw a slight increase of 1.42% in pre-market trading.
Donald Trump’s decision to ban the development of a United States Central Bank digital currency (CBDC) has shifted global momentum in the race to establish digital currencies. While the Federal Reserve has never shown strong interest in creating a digital dollar, the move sends a powerful signal internationally, leaving Europe and China as frontrunners in shaping global standards for CBDCs. Experts believe the US ban could enhance China’s influence, enabling it to push its digital yuan in developing countries while Europe advances plans for a digital euro.
Trump’s executive order prohibits US agencies from engaging in any CBDC-related activities, citing concerns over privacy, financial stability, and national sovereignty. Critics, including former allies of the CBDC concept, have raised fears about potential government surveillance through digital currencies. Meanwhile, some argue that stablecoins—private digital tokens pegged to the dollar—could serve as a temporary substitute, though this would require significant adjustments to existing financial systems.
The geopolitical implications of the US withdrawal are already emerging. Analysts see the move as a signal of “de-dollarisation,” with countries like Brazil continuing to develop their CBDCs despite the lack of US participation. The decision also puts collaborative international projects, such as those under the Bank for International Settlements, in jeopardy as they lose American involvement. Experts warn that without US engagement, the global CBDC landscape could shift in favour of China and Europe.
The digital revolution has brought in remarkable innovations, and quantum computing is emerging as one of its brightest stars. As this technology begins to showcase its immense potential, questions are being raised about its impact on blockchain and cryptocurrency. With its ability to tackle problems thought to be unsolvable, quantum computing is redefining the limits of computational power.
At the same time, its rapid advancements leave many wondering whether it will bolster the crypto ecosystem or undermine its security and decentralised nature. Can this computing breakthrough empower crypto, or does it pose a threat to its very foundations? Let’s dive deeper.
What is quantum computing?
Quantum computing represents a groundbreaking leap in technology. Unlike classical computers that process data in binary (0s and 1s), quantum computers use qubits, capable of existing in multiple states simultaneously due to quantum phenomena such as superposition and entanglement.
For example, Google’s new chip, Willow, is claimed to solve a problem in just five minutes—a task that would take the world’s fastest supercomputers approximately ten septillion years—highlighting the extraordinary power of quantum computing and fuelling further debate about its implications.
These advancements enable quantum machines to handle problems with countless variables, benefiting fields such as electric vehicles, climate research, and logistics optimisation. While quantum computing promises faster, more efficient processing, its intersection with blockchain technology adds a layer of complexity so the story takes an interesting twist.
How does quantum computing relate to blockchain?
Blockchain technology relies on cryptographic protocols to secure transactions and ensure decentralisation. Cryptocurrencies like Bitcoin and Ethereum use elliptic curve cryptography (ECC)to safeguard wallets and transactions through mathematical puzzles that classical computers cannot solve quickly.
Quantum computers pose a significant challenge to these cryptographic foundations. Their advanced processing power could potentially expose private keys or alter transaction records, threatening the trustless environment that blockchain depends upon.
Opportunities: Can crypto benefit from quantum computing?
While the risks are concerning, quantum computing offers several opportunities to revolutionise blockchain:
Enhanced security: Developers can leverage quantum principles to create stronger, quantum-secure algorithms.
Smarter decentralisation: Quantum-powered computations could enhance the functionality of smart contracts and decentralised apps (DApps).
By embracing quantum advancements, the blockchain industry could evolve to become more robust and scalable— hopefully great news for the crypto community, which is optimistic about the potential for progress.
How does quantum computing threaten cryptocurrency?
Despite its potential benefits, quantum computing poses significant risks to the cryptocurrency ecosystem, depending on how it is used and who controls it:
Breaking public key cryptography Quantum computers equipped with Shor’s algorithm can decrypt ECC and RSA encryption. Tasks that would take classical computers millennia could be accomplished by a quantum computer in mere hours. This capability threatens to expose private keys, allowing hackers to access wallets and steal funds.
Mining oligopoly The mining process, vital for cryptocurrency creation and transaction validation, depends on computational difficulty. Quantum computers could dominate mining activities, disrupting the decentralisation and fairness fundamental to blockchain systems.
Dormant wallet risks Wallets with exposed public keys, particularly older ones, are at heightened risk. A quantum attack could compromise these funds before users can adopt protective measures.
With projections suggesting that quantum computers capable of breaking current encryption standards could emerge within 10–20 years—or perhaps even sooner—the urgency to address these threats is intensifying.
Solutions: Quantum-resistant tokens and cryptography
Where there is a challenge, there is a solution. The crypto industry is proactively addressing quantum threats with quantum-resistant tokens and post-quantum cryptography. Lattice-based cryptography, for example, creates puzzles too complex for quantum computers, with projects like CRYSTALS-Kyber leading the charge. Hash-based methods, such as QRL’s XMSS, ensure data integrity, while code-based cryptography, like the McEliece system, uses noisy signals to protect messages. Multivariate polynomial cryptography also adds robust defences through complex equations.
As we can see, promising solutions are already actively working to uphold blockchain principles. These innovations are crucial not only for securing crypto assets but also for maintaining the integrity of blockchain networks. Quantum-resistant measures ensure that transaction records remain immutable, safeguarding the trust and transparency that decentralised systems are built upon.
The quantum future for crypto
Quantum computing holds tremendous promise for humanity, but it also brings challenges, particularly for blockchain and cryptocurrency. As its capabilities grow, the risks to existing cryptographic protocols become more apparent. However, the crypto community has shown remarkable resilience, with quantum-resistant technologies already being developed to secure the ecosystem. This cycle of threats and solutions is a perpetual motion—each technological advancement introduces new vulnerabilities, met with equally innovative defences. It is the inevitable price to pay for embracing the modern decentralised finance era and the transformative potential it brings.
The future of crypto does not have to be at odds with quantum advancements. With proactive innovation, collaboration, and the implementation of quantum-safe solutions, blockchain can survive and thrive in the quantum era. So, is quantum computing a threat to cryptocurrency? The answer lies in our ability to adapt. After all, with great power comes great responsibility—and opportunity.
