The European Central Bank (ECB) has released its second progress report on the development of the digital euro, marking the halfway point of the preparatory phase. The report addresses key issues such as holding limits for the central bank digital currency (CBDC) and the harmonisation of laws to ensure universal standards. The Rulebook Development Group is leading efforts with seven workstreams involving market participants and central banks.
User preferences on holding limits are being studied, with a potential solution being a ‘reverse waterfall’ system that transfers excess digital euros to fiat in linked accounts. Offline transaction solutions are also under consideration, although specific details remain limited. Meanwhile, discussions continue over competition between European and non-European financial service providers, as well as the development of technical services such as wallets.
The ECB aims to improve user experience, offering cash-like privacy for those prioritising discretion. ECB executive board member Piero Cipollone previously assured that the digital euro would provide greater privacy than current commercial options. A final decision on the digital euro’s launch is expected in October 2025, with the next progress report due in mid-2025.
Michael Saylor, Executive Chairman of MicroStrategy, urged Microsoft to adopt Bitcoin as a strategic reserve during a presentation to the company’s board on 1 December. He emphasised Bitcoin’s potential to become the world’s leading asset within 20 years, surpassing gold and art with a projected global wealth share of $280 trillion. Highlighting Bitcoin’s rapid growth, Saylor noted its annual performance has outpaced Microsoft shares by 12 times, with MicroStrategy shares soaring over 3,000% since embracing Bitcoin.
In his pitch, Saylor framed Bitcoin as a vital asset for Microsoft’s future, claiming it could reduce investor risk while driving share prices to $584 and maximising market capitalisation to nearly $5 trillion. He contrasted Bitcoin’s benefits with traditional financial strategies, urging the board to innovate by adopting the cryptocurrency.
Saylor also introduced Bitcoin24, a product designed to integrate Bitcoin into corporate strategies. He argued that this approach could lower Microsoft’s share risk from 95% to 59% and increase annual recurring revenue from 10.4% to 15.8%. As political and market support for Bitcoin grows, Saylor asserted that Microsoft’s adoption of Bitcoin would secure its position in the digital future.
The Russian Central Bank claims it is making significant progress in tackling peer-to-peer cryptocurrency exchanges. According to a recent financial stability review, the regulator states that high-risk transactions have dropped by 2.8 times compared to 2023. Efforts to combat illegal crypto circulation have involved close collaboration with commercial banks, leading to numerous blocked transfers tied to P2P platforms.
The Russian crypto market remains unregulated and fragmented despite tighter measures, with underground exchanges using fictitious accounts for settlements. While the Central Bank reports a 16 per cent decrease in Russians’ estimated crypto wallet balances since March, the overall volume of crypto transactions involving Russian investors has risen by 18 per cent in 2024.
The bank noted increased interest in global crypto platforms, with web traffic from Russian IPs soaring by over 56 per cent this year. Bitcoin remains the dominant choice for Russian holders, accounting for 69 per cent of wallet balances. Despite regulatory pressure, Russian traders continue to anticipate long-term growth in cryptocurrency values, driven by policy shifts in the US and trends like meme coins.
South Korea’s crypto tax implementation has been postponed once again, with lawmakers agreeing to delay its launch until January 2027. The decision comes after extended negotiations between the ruling People’s Power Party (PPP) and the opposition Democratic Party (DP). The DP initially opposed the delay, proposing an alternative plan to raise the tax threshold for crypto traders, but later conceded to the government’s timeline.
DP floor leader Park Chan-dae stated the postponement allows more time for institutional preparations, echoing concerns from party leader Lee Jae-Myung about the current system’s readiness for taxation. The amendment will now move forward for approval in a plenary session. Lawmakers have faced criticism for repeatedly delaying the tax, which was first scheduled to take effect in 2021.
The DP’s focus now shifts to opposing other government tax plans, including changes to dividend income and inheritance tax. Meanwhile, crypto traders in South Korea have expressed frustration, describing the tax situation as chaotic. While many welcome the postponement, some argue that political mishandling has caused unnecessary uncertainty in the industry.
Russian President Vladimir Putin has signed a new federal law regulating crypto mining and granting legal recognition to digital currencies as property. The law, which will take effect on January 1, 2025, introduces a personal income tax of 13% to 15% on cryptocurrency sales, with mining operations exempt from value-added tax (VAT). It also mandates that mining infrastructure operators report their services to local authorities every quarter, with penalties for late submissions.
The legislation also recognises digital currencies as property, granting them legal status and allowing their use in cross-border transactions under Russia’s experimental legal regime. Crypto miners will be taxed progressively based on income, with a 13% rate on earnings up to 2.4 million rubles and 15% on income above that threshold. However, corporate profits from mining activities will face a higher tax rate of 25% from 2025 onwards.
Alongside the tax changes, Russia’s ongoing energy crisis has led to restrictions on mining activities in energy-scarce regions. Certain areas, such as Irkutsk and Donetsk, may face mining limits until 2031, which could have a significant impact on mining companies relying on cheap energy sources.
This regulatory clarity has contributed to a rise in demand for cryptocurrencies, reflected by an 8% increase in traffic to major exchanges in November. However, the energy-intensive nature of mining and regional restrictions remain key challenges for the industry.
Coinbase has announced it will end its USDC Rewards programme in the European Economic Area (EEA) on 1 December, citing the region’s incoming MiCA regulations as the reason. Customers eligible to earn rewards on their USD Coin balances can do so until 30 November, after which the service will cease. The EEA includes 30 nations, comprising 27 EU member states alongside Iceland, Norway, and Liechtenstein.
MiCA’s regulations, introduced in June, impose strict standards for stablecoin issuers, including a ban on offering interest for stablecoin holdings. The move has drawn criticism, with figures like Paul Berg, co-founder of Sablier, and Ripple’s David Schwartz calling the rules counterproductive to consumer interests.
Coinbase had previously announced plans to delist non-compliant stablecoins by the end of the year, including Tether’s Euro-pegged EURT. Tether recently confirmed it will cease support for EURT and shift focus towards MiCA-compliant tokens, such as EURQ and USDQ. The new framework is set to fully take effect by 30 December.
The Swiss canton of Bern’s parliament has approved a motion to commission a report on Bitcoin mining, despite opposition from the Government Council. The report, which passed with 85 votes in favour and 46 against, will explore the potential benefits and drawbacks of Bitcoin mining in the region. Specifically, it will assess how excess energy could be used for mining, the possible collaboration with Swiss Bitcoin miners, and how it could contribute to stabilising the local electricity grid.
Proponents of the report argue that Bitcoin mining could offer several advantages, including job creation, promotion of renewable energy, and grid stability, with the US state of Texas serving as a model. Despite the Government Council’s reservations, the proposal was supported by members of the Bitcoin Parliamentary Group, signalling a shift in the narrative around Bitcoin.
The report is part of a broader effort to shape Swiss energy policy and integrate Bitcoin mining into it, though the Government Council has pointed out that the issue of energy consumption is a global one, not local. Still, Switzerland’s reputation as a pro-crypto country remains intact, with cities like Zug and Lugano playing key roles in the blockchain industry.
Microsoft and Atom Computing have announced a significant breakthrough in quantum computing that could revolutionise blockchain mining. The two companies developed a quantum system with 24 entangled logical qubits using just 80 physical qubits, setting a new record in quantum efficiency. This achievement could eventually lead to a transformation in the world of proof-of-work (PoW) blockchain mining, as quantum systems become capable of outperforming traditional mining methods.
The advancement is especially notable for its potential to impact the security of blockchain networks like Bitcoin, which rely on SHA-256 encryption. Quantum computers, by applying Grover’s Algorithm, could significantly speed up the process of solving the PoW puzzle, threatening the security measures that have safeguarded blockchain technology. While Grover’s Algorithm has shown promise in small-scale experiments, it has yet to be proven on the large scale required for cracking SHA-256 encryption.
Though the timeline for practical quantum mining remains uncertain, with experts predicting it could take 10 to 50 years, Atom Computing and Microsoft aim to bring a 1,000-qubit quantum computer to market as early as 2025. This breakthrough could drastically shorten the path to quantum systems capable of rivaling traditional mining rigs.
21Shares, a Swiss wealth manager, has expanded its European offerings by adding four new exchange-traded products (ETPs) focused on various digital assets. Announced on 27 November, the new products are backed by Pyth Network, Ondo, Render, and the Near Protocol, representing sectors such as price oracles, asset tokenisation, decentralized computing, and artificial intelligence. These additions are part of a broader push by 21Shares to meet growing demand for crypto investment options in Europe.
The new ETPs, available for trading in cities such as Amsterdam and Paris, offer more flexibility, including the ability for investors to reinvest staking rewards from the Near Protocol ETP. By participating in Near’s proof-of-stake blockchain, investors can earn yield, potentially improving the performance of the ETP and driving greater returns.
This move follows 21Shares’ call for clearer regulatory guidelines for digital asset products in Europe. The company has been vocal about the need for comprehensive regulation, especially concerning crypto exchange-traded funds (ETFs) and ETPs. Despite progress with stablecoin and exchange regulations, 21Shares believes the European Securities and Markets Authority could play a key role in bridging these regulatory gaps.
The introduction of these new ETPs also builds on 21Shares’ earlier rebranding of its Ethereum Core ETP, which now includes staking rewards, reinforcing the company’s focus on enhancing returns for investors in the evolving crypto market.
India’s cryptocurrency market is thriving despite the government imposing high taxes on crypto trading. Since the implementation of a 30% tax on crypto gains and a 1% tax deducted at source in 2022, the community has shown resilience, maintaining its position as a global leader in adoption, according to the Chainalysis Global Adoption Index.
Driven by its youthful, tech-savvy population, India is home to over 100 million crypto owners in 2024. Local exchanges like ZebPay and CoinDCX highlight how seamless conversion systems and blockchain interest are fuelling growth, even under challenging tax policies. However, experts argue these taxes deter frequent trading and could hinder broader participation.
Industry leaders and analysts believe India’s crypto ecosystem has yet to realise its full potential. Calls for a more flexible regulatory framework are growing, with hopes that reforms could further energise the market and secure India’s leadership in cryptocurrency adoption.
