The Bank of England is exploring how emerging privacy technologies, such as zero-knowledge proofs (ZK-proofs), could enhance data privacy in a potential digital pound. In its report ‘Enhancing the Privacy of a Digital Pound,’ the bank suggests these technologies may limit data sharing, giving users greater control over their information while maintaining privacy between the central bank and payment intermediaries.
Following its 2023 public consultation, the Bank of England, alongside HM Treasury, assured the public that personal data would remain inaccessible to both the government and the central bank. Collaborating with MIT’s Digital Currency Initiative, the bank continues to research privacy-enhancing technologies while acknowledging the challenges of balancing privacy with regulatory requirements.
The digital pound initiative began in 2020 and has since undergone detailed evaluations. While no decision has been made on launching the currency, the central bank emphasises the need to adapt to declining cash use and advancements in payment technologies.
A new report by Bitcoin exchange River reveals that over 13 nations now hold Bitcoin, with El Salvador standing out as the only country to make direct purchases. President Nayib Bukele’s government has accumulated 5,900 BTC, achieving profits of $333.59 million from an initial $269.74 million investment, fuelled by Bitcoin’s recent surge past $100,000.
The United States leads global holdings with 208,100 BTC, most acquired through enforcement actions. The United Kingdom holds 61,200 BTC, while China has 15,000 BTC. Other nations, such as Bhutan and Norway, rely on mining or wealth funds to gain Bitcoin exposure, avoiding direct purchases due to political risks and lack of secrecy.
El Salvador, which adopted Bitcoin as legal tender in 2021, faces scrutiny from the International Monetary Fund. The country is negotiating a $1.3 billion loan, potentially making Bitcoin adoption voluntary instead of mandatory for businesses. This agreement could secure an additional $2 billion in funding from international institutions if finalised.
Russian State Duma Deputy Anton Tkachev has proposed the creation of a strategic bitcoin reserve for the nation. Tkachev, representing the New People party, submitted the proposal to Finance Minister Anton Siluanov, advocating for bitcoin reserves to complement Russia’s traditional currency reserves.
In the proposal, Tkachev highlighted the risks of relying solely on traditional reserves like the dollar, euro, and yuan, citing their vulnerability to inflation and international sanctions. He argued that bitcoin could be an independent financial buffer to enhance Russia’s economic stability.
This move aligns with a growing trend among nations, including El Salvador, Brazil, and Poland, to adopt Bitcoin reserves. Recent comments from President Vladimir Putin, affirming the legality and inevitability of Bitcoin’s growth in Russia, may bolster support for the initiative.
The National Center for Public Policy Research, a Washington DC-based think tank, has proposed that Amazon consider adopting a Bitcoin corporate treasury strategy. The proposal will be tabled at the company’s April 2025 shareholder meeting, highlighting concerns over inflation risks eroding Amazon’s $88 billion in cash and short-term cash equivalents. According to the proposal, the Consumer Price Index (CPI) underestimates true inflation, with authors suggesting that the actual rate may be twice the reported figure, posing risks to shareholder value.
Bitcoin is presented as a potential hedge against these economic pressures. The think tank points to Bitcoin’s performance as evidence, noting that the cryptocurrency outperformed corporate bonds by 126% over the past year and saw a 1,246% increase over the last five years. They recommend Amazon allocate at least 5% of its assets to Bitcoin to safeguard its financial reserves, drawing on the success of MicroStrategy’s own Bitcoin treasury strategy as a proven example. MicroStrategy’s holdings are currently valued at over $40 billion, putting the company at about $17 billion in profit.
The idea is gaining traction among other companies as well. MARA, formerly Marathon Digital, recently raised $1 billion through a 0% interest convertible note offering to purchase 6,474 Bitcoin for its corporate treasury. Additionally, artificial intelligence firm Genius Group has converted a portion of its treasury into Bitcoin, having acquired 110 BTC at an average price of $90,932 each. These moves suggest that a Bitcoin treasury strategy is becoming an increasingly popular choice for companies looking to strengthen their financial positions amid market uncertainty.
Polish authorities have detained Dmitry V., the former head of Russia’s crypto exchange WEX, in Warsaw following an extradition request from the US Department of Justice. During his tenure at WEX, Dmitry V. was suspected of fraud and money laundering. He is facing potential extradition to the US, where charges could carry a maximum 20-year prison sentence.
Dmitry V. has been linked to WEX, a successor to BTC-e, once Russia’s largest cryptocurrency platform before its collapse in 2018. The exchange was infamous for lax identity checks and ties to high-profile crypto hacks, including the Mt. Gox breach. Around $450 million remains unaccounted for from WEX, which had processed over $9 billion in transactions during its operation.
This is not Dmitry V.’s first arrest; he was previously detained in Poland in 2021 and later apprehended by Interpol in Croatia in 2022. His history also includes a 2019 arrest in Italy, which was short-lived due to errors in the extradition process.
Donald Trump’s family and allies are heading to Abu Dhabi for the Gulf’s largest bitcoin gathering amid record-breaking highs for the digital currency. The Bitcoin MENA conference is set to draw over 6,000 attendees, including key figures in Trump’s cryptocurrency initiative. Eric Trump will deliver the keynote address, followed by exclusive sessions for top investors.
World Liberty Financial, co-founded by Trump and led by billionaire Steve Witkoff, plays a central role in the event. Trump himself is the chief crypto advocate, while his sons act as brand ambassadors. The platform has already attracted major investors like blockchain entrepreneur Justin Sun, despite Sun’s legal troubles under the Biden administration.
Bitcoin’s rise to $100,000 has fuelled excitement, with Trump pledging to make the US the global crypto hub. Former PayPal executive David Sacks has been appointed White House czar for AI and cryptocurrencies, reflecting a broader push towards digital innovation. Keynote speeches and whale-only sessions highlight the growing influence of crypto in Trump’s circle and the broader industry.
The conference also features controversial figures, such as Binance founder Changpeng Zhao, who recently served a US prison sentence. With prominent backers and growing market momentum, the event signals a pivotal moment for cryptocurrency and its role in shaping Trump’s political and economic agenda.
The Czech Republic has introduced a landmark law exempting bitcoin holdings of over three years from capital gains tax. Approved unanimously by parliament on 6 December, the new rule will take effect on 1 January 2025, offering significant incentives for long-term cryptocurrency investors.
Under the law, individuals can benefit from tax exemptions if their annual income from crypto transactions remains under CZK 100,000 ($4,000) or if digital assets have been held for over three years. Prime Minister Petr Fiala highlighted the law as a step towards modernising financial regulations and fostering a favourable environment for cryptocurrency adoption.
The tax exemption also includes provisions for assets acquired before 2025, encouraging retroactive benefits under specified conditions. The reforms align with the EU’s Markets in Crypto-Assets (MiCA) framework, placing the Czech Republic among global leaders like Switzerland and the UAE in promoting crypto-friendly policies.
Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) over its decision to place the company’s payment division under federal supervision. The legal dispute arises from the CFPB’s claims that Google’s handling of its payment products, including a discontinued peer-to-peer payment service, posed risks to consumers.
The lawsuit, lodged in the Washington, DC district court, argues that the CFPB’s actions constitute government overreach. Google asserts the decision was based on limited and unverified user complaints, stating that a discontinued product cannot pose consumer risks. The CFPB, however, maintains that its supervisory authority is essential to enforcing compliance with financial laws, even for defunct services.
Google spokesperson José Castañeda described the agency’s oversight as unnecessary, reiterating that the company’s payment products have always prioritised user safety. Google also claims the CFPB set an unreasonably low standard for determining consumer risks, leading to undue regulatory burdens.
The CFPB’s authority to oversee nonbank financial institutions, announced in 2022, allows it to conduct examinations and intervene against potential risks to consumers. Google contends that applying such measures to its payments division is unjustified and aims to challenge the agency’s approach in court.
Vancouver’s city council will soon debate a proposal by Mayor Ken Sim to integrate Bitcoin into municipal finances. Scheduled for 11 December, the motion seeks to diversify financial reserves and explore options such as accepting taxes and fees in Bitcoin or converting a portion of the city’s reserves into digital currency. Sim’s ABC Vancouver party holds a council majority, making the proposal likely to pass.
The initiative highlights Bitcoin’s potential to protect purchasing power from inflation and promote innovation. Vancouver, known as a crypto-friendly hub since hosting the world’s first Bitcoin ATM in 2013, would join other jurisdictions like El Salvador and Switzerland’s Zug in embracing Bitcoin. However, some critics point to environmental concerns tied to Bitcoin mining and British Columbia’s existing moratorium on new mining projects due to electricity usage.
Mayor Sim, an outspoken Bitcoin advocate, described the cryptocurrency as a revolutionary invention during a recent interview. While the motion has sparked debate, legislative hurdles remain, as neither Vancouver’s nor British Columbia’s charters currently permit the use of cryptocurrency for municipal services.
Ethiopia has rapidly become a major player in Bitcoin mining, now contributing 2.5% of the global hash rate. According to local miner Kal Kassa, this figure is expected to more than double within the year, with local operations consuming 600 MW of power. By year-end, this could rise to 1 gigawatt, increasing Ethiopia’s share to 7% of the global Bitcoin network’s hash rate.
The country’s rise as a mining powerhouse follows China’s 2021 ban on Bitcoin mining, prompting many Chinese miners to relocate. Companies like Bitmain-backed BitFuFu and BIT Mining have set up operations in Ethiopia, attracted by the nation’s abundant hydropower and surplus renewable energy.
The Ethiopian government has actively supported the industry, generating over $55 million in revenue over the past 10 months from agreements with Bitcoin mining companies. This shift could position Ethiopia and other early Bitcoin-adopting nations as new economic leaders in the coming decades.
