Cryptocurrencies Archives | Page 2 of 173 | Digital Watch Observatory

US lawmakers push permanent CBDC ban over surveillance concerns

Republican lawmakers are seeking to permanently block the creation of a US central bank digital currency as the House prepares to consider an amended housing bill later this week.

Representatives Mike Flood and Warren Davidson are pushing to remove language that would allow a restriction on a US CBDC to expire in 2030. Their proposal is intended to prevent what they describe as a future pathway for developing or issuing a digital dollar.

The debate follows earlier House action on the Anti-CBDC Surveillance State Act, sponsored by Representative Tom Emmer. According to Congress.gov, the bill would prohibit a Federal Reserve bank from offering products or services directly to individuals, maintaining accounts for individuals or issuing a central bank digital currency. It would also restrict the Federal Reserve Board from using a CBDC to implement monetary policy or from testing, studying, creating or implementing one, subject to exceptions in the bill.

Debate over central bank digital currencies in the United States has increasingly focused on privacy, financial surveillance and government control over payment systems. Critics warn that a digital dollar could expand state oversight of financial activity, while supporters of CBDC research argue that central bank digital money could modernise payments and support financial inclusion.

Lawmakers backing permanent restrictions have repeatedly cited civil liberties concerns and pointed to China’s digital currency model as a warning against state-controlled digital money. The dispute also reflects a broader divide over whether the future of digital payments should be led by public central bank infrastructure or by private-sector instruments such as stablecoins and other digital assets.

Why does it matter?

The debate could shape the direction of US digital finance policy by limiting the Federal Reserve’s ability to develop or even test a digital dollar. A permanent CBDC restriction would reinforce a policy preference for private-sector payment innovation, including stablecoins and cryptocurrencies, while narrowing the role of public central bank money in future digital payment systems. It also places the United States on a different path from countries that are actively exploring or deploying CBDCs as part of payment modernisation and financial sovereignty strategies.

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White House pushes fintech integration into US banking framework

US President Donald Trump has signed an executive order directing federal financial regulators to review rules and supervisory practices that may be limiting fintech and digital asset firms’ access to traditional financial services and payment infrastructure.

The order says federal regulators should identify regulations, guidance, supervisory practices and application processes that could be updated to support innovation, competition and fintech partnerships with federally regulated financial institutions.

Agencies covered by the review include the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration and the Consumer Financial Protection Bureau.

Within 90 days, regulators must review existing rules and processes affecting fintech firms, particularly small and emerging companies. The review will examine barriers to partnerships with banks, credit unions, broker-dealers, investment advisers and other regulated institutions, as well as application processes for bank charters, deposit insurance, licences, registrations and authorisations.

The order also asks the Federal Reserve Board to evaluate whether uninsured depository institutions and non-bank financial companies, including firms involved in digital assets and other novel financial activities, could receive broader access to Reserve Bank payment accounts and payment services. The review will also cover companies participating directly in real-time payment networks.

The Federal Reserve is asked to assess legal authority, financial stability risks, legal obstacles and possible options for expanding such access where permitted by law. It must also examine whether the 12 regional Federal Reserve Banks apply consistent standards when granting or denying access to Reserve Bank accounts and payment services.

If the Federal Reserve concludes that existing law allows direct access for covered firms, the order asks it to establish transparent application procedures and make decisions on complete applications within 90 days.

The order comes amid continued pressure from fintech and digital asset companies seeking clearer pathways into core financial infrastructure. The White House said the policy aims to reduce unnecessary barriers to entry while balancing innovation with safety and soundness, consumer and investor protection, market integrity and financial stability.

Why does it matter?

The order could reshape how fintech and digital asset firms interact with the US banking system, but only if regulators conclude that broader access is legally and prudentially viable. Its significance lies in putting bank partnerships, licensing processes and Federal Reserve payment access under formal review, potentially opening new pathways for non-bank financial companies while raising questions about oversight, financial stability and the boundaries between banks and fintech firms.

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US crypto usage rises to 10% in 2025, Fed reports

Crypto adoption in the United States rose to 10% of adults in 2025, up two percentage points from the previous year, according to the Federal Reserve’s latest report on the economic well-being of US households.

The figure marks a rebound from 7% in 2023 and 8% in 2024, though it remains below the 12% recorded in 2021, when the survey first asked about cryptocurrency. The Federal Reserve notes that its online survey may include respondents who are more technologically connected than the overall population.

The data shows that crypto is used far more commonly as an investment tool than as a payment method. Around 9% of adults bought or held cryptocurrency as an investment in 2025, while 2% used it to buy something or make a payment, and 1% used it to send money to friends or family.

Among adults who used cryptocurrency for financial transactions, the most common reason was that the recipient preferred cryptocurrency. Other reasons included faster transfers, privacy and lower cost.

Transactional crypto use remained more common among unbanked adults, with 6% using cryptocurrency for financial transactions compared with 2% of banked adults. The Fed also found higher transactional use among adults who used nonbank check cashing or money orders. However, it stressed that crypto use for transactions remained very low even among those groups.

Why does it matter?

The Fed’s data show that crypto use in the United States is rebounding, but it still primarily functions as an investment rather than a mainstream payment tool. Payment use remains limited, including among adults who are more likely to rely on nonbank financial services, suggesting that digital assets have not yet become a broad alternative to traditional payment systems.

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Myanmar proposes Anti-Online Fraud Bill targeting digital currency scams

Myanmar’s military-backed authorities have proposed a new Anti-Online Fraud Bill to tackle digital currency scams and online fraud networks operating in the country.

The draft legislation would introduce severe penalties for offences linked to online fraud and ‘digital currency fraud’. Reports citing the text say those convicted could face prison sentences ranging from 10 years to life imprisonment.

The bill also proposes the death penalty in the most serious cases involving online scam centres, particularly where people are unlawfully detained, violently coerced or forced into scam operations. AFP, cited by Malay Mail, reported that the proposed penalty would apply to those who detain or violently coerce victims into working in online scam centres.

The proposal reflects growing pressure on Myanmar over large scam compounds where trafficked people have reportedly been forced into online fraud schemes, including romance and cryptocurrency scams. International scrutiny has intensified as cyber-fraud networks across Southeast Asia continue to target victims globally.

Myanmar’s authorities have presented online fraud and online gambling as national security concerns. State media has previously reported crackdowns, deportations and plans for a national anti-scam centre, while also describing telecom fraud and online gambling as threats requiring stronger enforcement.

The bill comes amid wider regional action against transnational scam networks. China has pursued criminal cases linked to Myanmar-based fraud syndicates, while international organisations and law enforcement agencies have warned that online scam compounds combine cybercrime, financial fraud and human trafficking.

Why does it matter?

The proposed bill shows how governments are escalating responses to transnational online fraud networks, particularly where crypto scams overlap with human trafficking and forced labour in scam compounds. Myanmar’s approach would mark a shift towards extreme punitive measures, raising both enforcement and human rights concerns, while highlighting how digital fraud has become a cross-border security issue involving organised crime, financial losses and exploitation of vulnerable people.

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Deutsche Bank highlights shift towards digital forms of money

Deutsche Bank has highlighted a structural shift in the financial system towards digital, programmable, and always-on money. In a new white paper, the bank examines how real-time transaction infrastructure is reshaping payments and driving the adoption of new forms of digital currency.

The report identifies three core pillars of this transformation:

Stablecoins
Tokenised deposits
Central bank digital currencies (CBDCs)

Stablecoins have seen rapid growth in transaction volumes and are increasingly supported by formal regulatory frameworks in key jurisdictions, particularly for cross-border and business-to-business payments, the report describes.

Tokenised deposits are emerging as a competing model of programmable bank money, enabling 24/7 settlement within and between financial institutions. According to the report, adoption remains limited by interoperability challenges and the use of permissioned networks.

The report describes CBDCs as a public-sector approach to digital money innovation. China’s e-CNY system and the European Central Bank’s planned digital euro illustrate growing momentum, while Asian financial hubs continue to expand cross-border and institutional settlement pilots.

Why does it matter?

The shift outlined in the Deutsche Bank report signals a structural redesign of how money itself functions, moving from static, institution-bound systems to programmable, always-on digital infrastructure.

As stablecoins, tokenised deposits, and CBDCs develop in parallel, they collectively reshape how value is issued, transferred, and settled across borders, potentially reducing friction in global payments while increasing competition between public and private forms of money.

The evolution is not just about efficiency gains but about who controls monetary infrastructure, how regulatory frameworks adapt, and how financial sovereignty and interoperability are balanced in an increasingly tokenised global economy.

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Australia moves to tighten capital gains rules on crypto assets

Australia’s proposed capital gains tax reforms could affect crypto investment behaviour, according to industry participants. The ruling Labor Party has proposed changes, including a minimum 30% tax on capital gains and the removal of the 50% discount for assets held for more than 12 months.

Industry representatives said the changes may increase the tax burden for some crypto investors, particularly lower-income retail traders. Estimates suggest that smaller retail traders could see a substantial rise in liabilities under the new structure, reducing the appeal of ‘patient investing’ and long-term wealth-building strategies.

Some market participants said the policy shift could encourage more frequent trading in crypto markets. Industry participants also suggested that some investors may shift towards structured investment vehicles such as retirement funds.

The reforms still require approval from Australia’s Parliament and face political resistance. Critics said the measures could affect investment patterns and asset allocation decisions across financial markets.

Why does it matter?

The proposed tax changes remove incentives for long-term crypto holding and may shift investor behaviour towards shorter-term trading. By increasing tax burdens on gains held over time, the policy could reshape retail investment strategies and influence how capital flows within Australia’s digital asset market.

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CLARITY Act moves forward amid split over crypto market rules

The United States Senate Banking, Housing, and Urban Affairs Committee has advanced the Digital Asset Market Clarity Act in a 15–9 vote, marking another step towards establishing a federal framework for digital asset markets.

Committee Chair Tim Scott said the bill is intended to establish clearer rules for digital assets, strengthen consumer protection, support innovation and keep digital asset activity within the United States. The committee said the legislation now moves to the Senate floor.

The vote followed months of negotiations and highlighted continuing political divisions over the scope of US crypto regulation. Supporters argue that the bill would provide long-awaited market structure rules, while critics remain concerned about consumer protection, enforcement powers, conflicts of interest and the treatment of decentralised finance.

A central issue in the revised text is how to regulate stablecoin-related activity. The bill seeks to prevent stablecoins from functioning like bank deposits by limiting passive yield on customer holdings, while still allowing certain rewards linked to user activity or platform use.

The bill also continues debate over decentralised finance, including how far regulation should extend to developers, protocols and infrastructure providers that do not directly custody user funds.

Ethics provisions were among the most contested issues during the markup process, with lawmakers divided over whether and how to restrict potential conflicts of interest involving public officials and cryptoasset activities.

Further hurdles remain before the legislation can become law. The bill will need to advance through the full Senate, be reconciled with other Senate work on digital asset regulation and secure agreement with the House of Representatives before reaching the President’s desk.

Why does it matter?

The vote moves the United States closer to a federal framework for digital asset markets, but the debate shows that key questions remain unresolved. Rules on stablecoin rewards, DeFi, developers and enforcement powers will shape how crypto firms operate in the US. However, the political split could affect how quickly Congress can deliver a stable regulatory regime.

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Swiss town introduces blockchain voucher scheme to support conservation work

The Swiss municipality of Muri bei Bern has launched BIDI, a blockchain-based biodiversity voucher system designed to reward residents for local conservation work.

The project was developed with The Hashgraph Group, Swisscoast and Apps with Love, and runs on Hedera’s distributed ledger infrastructure. Project partners describe it as Switzerland’s first live municipal blockchain initiative.

Residents can receive digital vouchers for activities such as meadow restoration, invasive plant removal, wetland conservation and hedge maintenance. The vouchers are pegged to the Swiss franc and can be redeemed at participating local merchants and service providers.

The project replaces a paper-based voucher programme that had operated locally for several years. Swisscoast developed the payment layer using its HCHF digital Swiss franc infrastructure, while The Hashgraph Group supported the initiative through its Enterprise Accelerator Programme for government and enterprise blockchain applications.

Project partners present BIDI as an example of blockchain technology being used beyond financial markets, with a focus on public administration, environmental incentives and local economic participation. They also say the framework could be adapted for other municipalities in Switzerland and elsewhere in Europe.

Why does it matter?

The project shows how blockchain tools are being tested in local public services, not only in finance. By digitising biodiversity vouchers and linking them to local conservation work, Muri bei Bern is experimenting with a model that could make environmental incentives easier to issue, track and redeem. Its wider significance will depend on whether the system proves useful beyond a small municipal setting and whether similar projects can scale without adding unnecessary technical complexity.

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Bhutan’s Gelephu city launches fast-track crypto licensing for global firms

Bhutan’s Gelephu Mindfulness City has launched an accelerated pathway for crypto and fintech firms already regulated in major financial hubs such as Singapore, Hong Kong and Abu Dhabi.

The system is intended to reduce duplication in compliance checks while allowing eligible companies to incorporate in Gelephu, seek local regulatory approval, and open corporate bank accounts through a coordinated process involving DK Bank, the city’s official banking partner. Standard Know Your Customer and Anti-Money Laundering checks will still apply.

Officials said foreign licences will not replace local supervision, but will instead help streamline due diligence. The framework also differs from passporting models used in regions such as the European Union, as each firm must still meet Gelephu’s own regulatory requirements.

Gelephu Mindfulness City also rejected speculation linking recent Bitcoin transfers flagged by analytics platforms to reserve sales. Officials said Bitcoin held under the country’s ‘Bitcoin Development Pledge’ remains part of strategic reserves allocated for the long-term development of the city.

Why does it matter?

The move shows how smaller jurisdictions are competing for digital asset and fintech firms by offering faster market entry while trying to preserve regulatory credibility. By recognising existing licences without replacing local supervision, Gelephu is positioning itself as a controlled gateway for firms seeking access to a new crypto and fintech jurisdiction.

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Stablecoin rules updated in revised US Senate proposal

The US Senate Banking Committee has released a revised 309-page draft of the Digital Asset Market Clarity Act ahead of a markup vote, reopening debate on stablecoin rewards, DeFi protections and the regulation of digital asset markets.

The draft, proposed by Committee Chair Tim Scott, seeks to provide a federal framework for digital asset market structure, including provisions on securities innovation, illicit finance, decentralised finance, banking innovation, regulatory sandboxes, software developers and customer protection.

A key section addresses stablecoin rewards. The draft would prohibit digital asset service providers from paying interest or yield on payment stablecoin balances in a way that is economically or functionally equivalent to bank deposit interest. However, it would permit certain activity-based or transaction-based rewards and incentives, provided they are not equivalent to interest or yield on a bank deposit.

The text also includes provisions affecting decentralised finance. It covers rules on non-decentralised finance trading protocols, illicit finance obligations for distributed ledger messaging systems, temporary holds for certain digital asset transactions, voluntary cybersecurity programmes for DeFi trading protocols and studies on digital asset mixers, foreign intermediaries and financial stability risks.

Software developer protections are also included in the draft. The bill contains a dedicated title on protecting software developers and software innovation, including provisions on non-fungible tokens, self-custody and blockchain regulatory certainty.

The draft still faces further negotiation before any final vote. Lawmakers continue to debate the balance between consumer protection, illicit finance controls, innovation, stablecoin incentives and the treatment of decentralised finance. At the same time, the legislation needs to be aligned with other Senate work on digital asset market structure.

Why does it matter?

The revised Clarity Act is another step towards a federal framework for digital asset markets in the United States, with rules that could shape how crypto firms, stablecoin platforms and decentralised finance projects operate. Its provisions on stablecoin rewards, DeFi and software developers show lawmakers trying to balance innovation, consumer protection and oversight in one of the world’s most important financial markets.

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