Cryptocurrencies

Trump meets crypto leader to plan Bitcoin reserve

President-elect Donald Trump met with Kris Marszalek, CEO of Crypto.com, on 16 December at Mar-a-Lago to discuss plans for a US Strategic Bitcoin Reserve. The meeting focused on developing a policy framework for the reserve, which aims to classify Bitcoin as a strategic asset within the Treasury’s Exchange Stabilisation Fund. The plan also includes rigorous audits and security protocols for government-held Bitcoin, consolidating assets within seven days and establishing a management programme within 60 days.

The Strategic Bitcoin Reserve is designed to bolster US economic security and global financial leadership in the digital asset space. The move aligns with Trump’s broader pro-crypto agenda, which includes appointing key industry advocates like Howard Lutnick as commerce secretary and Paul Atkins to lead the SEC. His administration’s crypto-friendly outlook is expected to enhance regulatory clarity and foster innovation.

The news coincided with Bitcoin reaching an all-time high of $108,268.45 on 17 December. This surge reflects growing confidence in the cryptocurrency’s role in the US financial landscape. Meanwhile, Ohio’s Derek Merrin has also proposed a state-backed Bitcoin reserve, signalling increasing governmental interest in Bitcoin as a hedge against economic uncertainties.

Around 19% of US voters have used or invested in crypto, poll shows

A recent Emerson College poll reveals that 19% of US voters have at some point invested in, traded, or used cryptocurrency. The poll, which surveyed 1,000 registered voters between 11 December and 13 December, also found that nearly 40% of crypto users had purchased with it. Crypto usage is notably higher among younger individuals, with nearly a third of voters under 40 using cryptocurrency, and men being twice as likely to use it as women.

The poll also highlighted the growing diversity of the crypto user base, with 33% of users identifying as Asian, Hispanic, or Black, compared to just 14% who were white. Additionally, 57% of crypto users expressed a favourable view of Donald Trump, reflecting the industry’s increasing political influence. This demographic is becoming a key constituency, as crypto advocacy groups continue to push for policies that favour digital currencies.

A separate survey by the Digital Chamber, a crypto advocacy group, indicated that roughly 26 million US voters prioritise pro-crypto policies when selecting political candidates. Over half of voters in another poll by Grayscale expressed a preference for pro-crypto candidates, with many suggesting that the US government could become the most crypto-friendly in history following the 2024 elections. This shift signals a growing alignment between crypto supporters and the political landscape, promising a more favourable regulatory environment for the industry.

Kraken operator fined millions by Australian court

Bit Trade, the operator of Kraken in Australia, has been fined $8 million for offering an unapproved margin lending product to over 1,100 customers. The Federal Court of Australia ruled that the company breached financial regulations by failing to assess customer suitability and neglecting to provide a Target Market Determination (TMD), a document essential for ensuring products are appropriately matched to consumers’ needs.

The Australian Securities and Investments Commission (ASIC) revealed that customers lost $7.85 million due to the product, with one individual losing $6.3 million. Justice John Nicholas criticised Bit Trade’s actions as “serious” and profit-driven, calling out the company for its delayed response to compliance issues. In addition to the fine, Bit Trade was ordered to cover ASIC’s legal costs.

Kraken was disappointed with the ruling, arguing that Australia’s regulatory framework lacks clarity and calls for tailored cryptocurrency laws. However, ASIC Chair Joe Longo described the decision as a turning point for consumer protection, urging digital asset firms to meet compliance obligations. The regulator is currently consulting with the crypto industry on updates to its guidance, though critics claim the government’s inaction has left the sector in “regulatory limbo.”

Bitcoin smashes $107,000 while MicroStrategy bets big

Bitcoin prices have reached a new record, surpassing $107,000 amid speculation that President-elect Donald Trump might establish a Bitcoin strategic reserve. The milestone came shortly after prices broke through $106,000, reflecting growing optimism in the cryptocurrency market.

Meanwhile, MicroStrategy announced a $1.5 billion bitcoin purchase, adding 15,350 bitcoins at an average price of $100,386 each. The company now holds 439,000 bitcoins, worth $47 billion, and has seen its market cap soar from $1.1 billion in 2020 to nearly $100 billion. The firm’s shares have surged by 527% this year, boosted by Bitcoin’s rally and its forthcoming inclusion in the Nasdaq 100 index.

Despite its impressive growth, analysts suggest MicroStrategy may face challenges in joining the S&P 500 due to concerns over profitability. Current accounting rules restrict how gains from bitcoin holdings are recorded, although new standards expected in January 2025 could help the company more accurately reflect its bitcoin-related gains.

Monad aims to expand the ecosystem with a new Foundation

The Monad blockchain project, compatible with Ethereum’s virtual machine, has introduced the Monad Foundation to advance the network’s growth and decentralisation. The Foundation will focus on validator-led governance, community improvement proposals, and ecosystem expansion, providing essential resources to developers while promoting adoption.

Amid speculation of a potential token launch, the Monad Foundation aims to ensure transparency in governance processes. Leadership includes Keone Hon and Eunice Giarta, alongside team members from Monad Labs, now renamed Category Labs, which will concentrate on software development and research under new CEO James Hunsaker.

This restructuring mirrors trends in blockchain projects, dividing governance and ecosystem efforts from technical development. With EVM compatibility, Monad is positioned to attract developers familiar with Ethereum tools, accelerating innovation and adoption.

Bitget secures Bitcoin service licence in El Salvador

Bitget has secured a Bitcoin Service Provider licence from El Salvador’s Central Reserve Bank, allowing the platform to offer Bitcoin-to-fiat exchanges, payments, and custody services in the country. This licence is part of Bitget’s strategy to strengthen its global regulatory position and expand its presence in Latin America.

El Salvador, which made Bitcoin legal tender in 2021, has become a hub for cryptocurrency adoption. With this new licence, Bitget aims to tap into the country’s growing crypto market, which serves as a gateway to the wider region. The company is also pursuing a Digital Assets Service Provider licence from El Salvador’s National Commission of Digital Assets to extend its services to other cryptocurrencies.

In addition to its progress in Latin America, Bitget has secured Virtual Asset Service Provider licences in Poland and Lithuania and recently re-entered the UK market through a partnership with Archax. The company also plans to set up a dedicated team in El Salvador to strengthen its local presence.

Ripple’s RLUSD stablecoin debuts globally

Ripple has confirmed that its RLUSD stablecoin, backed by the US dollar, will begin trading globally on 17 December. The launch follows approval from the New York Department of Financial Services (NYDFS) on 10 December. Ripple’s RLUSD stablecoin is 100% supported by US dollar deposits, short-term government Treasurys, and other cash equivalents. Initially, it will be available on major crypto platforms such as Uphold, MoonPay, and Archax, with plans for further listings in the coming weeks.

Ripple aims to target global adoption of RLUSD, with its partner network facilitating its use across regions including the Americas, Asia-Pacific, the UK, and the Middle East. The company plans to integrate RLUSD into its Ripple Payments protocol by early 2025 to support cross-border settlement and treasury remittance. Ripple also envisions RLUSD playing a role in decentralized finance protocols and trading tokenized real-world assets on-chain.

As part of the RLUSD launch, Ripple has appointed former banking officials, including Raghuram Rajan, former governor of the Reserve Bank of India, and Kenneth Montgomery, former vice president of the Federal Reserve Bank of Boston, to its advisory board. These appointments are aimed at strengthening the stablecoin’s regulatory and operational strategy. Ripple’s focus on compliance and reliability aims to position RLUSD as a leading player in the future of global payments.

Revitalising trust with AI: Boosting governance and public services

AI is reshaping public governance, offering innovative ways to enhance services and restore trust in institutions. The discussion at the Internet Governance Forum (IGF) in Riyadh, moderated by Brandon Soloski of Meridian International, focused on using AI to streamline services like passport processing and tax systems, while also addressing privacy and data sovereignty concerns. Open-source AI was highlighted as a critical tool for democratising access and fostering innovation, particularly in developing nations.

Global regulatory frameworks were a central theme, with panellists underscoring the need for harmonisation to avoid fragmentation and ensure seamless interoperability across borders. Economist and policy analyst at the OECD, Lucia Russo, discussed regulatory approaches such as the EU AI Act, which aims to create a comprehensive legal framework. Brandon Soloski and Sarim Aziz from Meta pointed to the benefits of principle-based frameworks in other regions, which provide flexibility while maintaining oversight. Pellerin Matis, Vice President of Global Government Affairs at Oracle, emphasised the importance of public-private partnerships, which allow governments to leverage private sector expertise and startup innovation for effective AI implementation.

The panellists explored how AI can enhance public services, highlighting its role in healthcare, agriculture, and public safety. Examples included AI-driven tools that improve patient care and streamline food production. However, challenges like data protection, trust in AI systems, and the balance between innovation and regulation were also discussed. Anil Pura, an audience member from Nepal, contributed valuable perspectives on the need for education and transparency to foster public trust.

Transparency and education were recognised as fundamental for building trust in AI adoption. Panellists agreed that ensuring citizens understand how AI technologies work and how their data is protected is essential for encouraging adoption. They called for governments to work closely with civil society and academia to create awareness and promote responsible AI use.

The discussion concluded with a call to strengthen collaborations between governments, private companies, and startups. Brandon Soloski highlighted how partnerships could drive responsible AI innovation, while Pellerin Matis stressed the importance of ethical and regulatory considerations to guide development. The session ended on an optimistic note, with panellists agreeing on AI’s immense potential to improve government efficiency and enhance public trust.

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.

Société Générale and Banque de France push blockchain innovation

Société Générale has achieved a milestone by conducting the first repo transaction using blockchain within the Eurosystem. The transaction carried out with Banque de France through Société’s digital asset subsidiary Forge, involved tokenised bonds issued on Ethereum in 2020 as collateral. Central bank digital currency (CBDC) issued by Banque de France was exchanged as cash, showcasing the potential of blockchain in modern financial operations.

The move highlights the feasibility of conducting interbank refinancing on-chain. Société Générale stated that using CBDCs for such transactions could improve liquidity for digital financial securities. Tokenisation, which converts traditional securities into digital tokens, offers faster settlement times and an immutable record of transactions, making it a promising technology for the financial sector.

Banque de France has been actively exploring CBDC use cases since 2021, including cross-border transactions and collaborations with global partners like the Hong Kong Monetary Authority. Meanwhile, Société Générale continues to expand its digital asset operations, including launching its euro-denominated stablecoin EUR convertible. The bank’s innovative efforts reflect its position as one of the world’s largest financial institutions.

Thailand embraces digital finance transformation to enhance competitiveness

Thailand’s former Prime Minister, Thaksin Shinawatra, has urged the government to delve deeper into cryptocurrencies to stay competitive in an increasingly digital world. Speaking at a lecture in Hua Hin, Shinawatra highlighted the growing importance of understanding digital assets, noting that global digitisation reshapes economies. He remarked on the proliferation of cryptocurrencies and emphasised that Thailand must adapt to avoid falling behind.

The country has already taken significant steps in exploring the digital economy. The Securities and Exchange Commission launched a regulatory sandbox earlier this year, allowing businesses to experiment with digital assets in a controlled environment. Meanwhile, the government fulfilled its campaign promise to distribute 10,000 baht in digital cash to 45 million residents as an economic stimulus.

Private institutions are also making moves, with Kasikornbank becoming Thailand’s first licensed crypto custodian in September. Regulatory shifts have further opened the door for mutual and private funds to invest in digital assets. Additionally, the Bank of Thailand collaborates with Hong Kong on tokenised cross-border settlements, cementing its role in shaping the region’s digital finance future.