Ripple CEO Brad Garlinghouse has called for a more inclusive approach to digital asset reserves, advocating for a US stockpile that represents a variety of cryptocurrencies rather than favouring a single token like Bitcoin or XRP. Highlighting the importance of a multichain ecosystem, he stressed the need for a level playing field in the crypto industry, stating, ‘Maximalism remains the enemy of crypto progress.’
Recent comments from US President Donald Trump have sparked discussions about a national digital asset reserve, an idea he supported before the election. However, market predictions suggest only a 17% chance of this initiative being authorised within Trump’s first 100 days in office.
Ripple’s XRP, used primarily for cross-border payments and remittances, remains integral to the company’s operations despite fluctuating values. On Monday, XRP traded at $2.65 following a brief spike to $3.09, reflecting the volatile nature of the cryptocurrency market.
Central bank digital currencies (CBDCs) face significant challenges in gaining consumer acceptance, according to a new survey by GlobalData. The findings reveal that users in countries with active CBDC programmes, such as the Bahamas, Jamaica, and Nigeria, are hesitant to switch from traditional payment methods due to a lack of incentives, privacy concerns, and technical complexities.
Blandina Szalay, an analyst at GlobalData, highlighted the slow adoption rates, explaining that CBDCs often complicate payments without offering clear benefits. Convenience and established habits remain strong drivers for consumers, making it difficult for CBDCs to gain traction.
Despite these hurdles, the global push for CBDCs continues, with 134 countries representing 98% of the world’s economy actively exploring the technology. Over 65 countries, including India and Brazil, are advancing their projects, with many in pilot phases. Central banks hope CBDCs can improve cross-border payments, promote financial inclusion, and enhance monetary stability, but achieving widespread adoption remains a formidable task.
The Czech National Bank is evaluating whether to include bitcoin in its reserves, Governor Aleš Michl revealed. No immediate decision is expected, but if approved, the bank could allocate up to 5% of its €140 billion reserves to the cryptocurrency.
Michl, who has focused on diversifying reserves since taking office in 2022, has already increased gold purchases and shifted investments toward equities. He plans to present the bitcoin proposal to the bank’s board, acknowledging the asset’s volatility as a key consideration.
While some central banks remain sceptical about bitcoin’s role as a reserve asset, growing institutional adoption has fuelled debate. The European Central Bank continues to reject bitcoin, likening it to speculative bubbles, while Switzerland has seen calls for its central bank to hold bitcoin alongside gold.
Interest in bitcoin has surged, with its value more than doubling in 2024. BlackRock’s bitcoin exchange-traded funds and the US government’s new cryptocurrency initiatives have contributed to its rise, making it an increasingly attractive option for investors.
Poland has expanded its Bitcoin ATM network to 219 machines, surpassing El Salvador to become the fifth-largest network globally, just behind the US, Canada, Australia, and Spain. The country added 10 new machines on 27 January, continuing its four-month spree of new installations, which began in October 2024. Meanwhile, El Salvador, which was one of the third-largest networks in October 2022, has not increased its Bitcoin ATM capacity.
Despite Poland’s growth, Salvadoran officials are focused on the broader adoption of Bitcoin. Juan Carlos Reyes, president of El Salvador’s National Commission of Digital Assets, explained that while Bitcoin ATMs provide a valuable service, they are becoming less essential due to the seamless integration of Bitcoin payments in daily life, reducing reliance on ATMs. He also pointed out that Bitcoin’s utility extends far beyond ATM transactions, giving citizens more options for everyday purchases.
Reyes further stressed the importance of balanced regulation for Bitcoin and crypto ATMs, particularly around concerns such as money laundering. He emphasised that Bitcoin’s traceable nature makes it fundamentally different from other digital assets, which should be considered when developing regulatory measures.
The global crypto ATM landscape now has around 38,100 machines spread across 65 countries. Notably, Australia has seen consistent growth and joined the US and Canada in surpassing 1,000 active Bitcoin ATMs.
At the World Economic Forum in Davos, Europol’s executive director, Catherine De Bolle, urged tech companies to provide law enforcement access to encrypted messages, citing public safety concerns. While she argued this is necessary to combat crime and protect democracy, critics highlighted the risks of undermining encryption, which is essential for privacy and individual freedoms.
De Bolle compared accessing encrypted communications to executing a search warrant in a locked house. However, this analogy oversimplifies the issue, as encryption safeguards sensitive data and ensures private communication, even under authoritarian regimes. Weakening it could lead to widespread misuse, enabling mass surveillance and suppression, as seen in places like Russia.
Advocates for privacy stress that encryption is not merely a barrier to crime but a cornerstone of democracy, enabling free speech and safeguarding against state overreach. While law enforcement has other tools for crime-fighting, creating backdoors to encryption would expose everyone to cyber risks and potentially render digital security obsolete.
If governments succeed in weakening encryption, decentralised solutions backed by blockchain technology could rise, making such access nearly impossible in the future. The debate underscores the critical balance between security and preserving fundamental rights.
The US Securities and Exchange Commission (SEC) has partially won its case against the crypto exchange Kraken. A California federal judge ruled on 24 January 2025, dismissing Kraken’s argument that Congress had not granted the SEC jurisdiction over the crypto market. Judge William Orrick decided that the SEC’s actions fell within powers that Congress could reasonably have delegated to the agency.
Kraken had invoked the ‘major questions doctrine,’ which argues that government agencies cannot exercise powers not specifically granted by Congress. Other crypto companies, such as Coinbase and Binance, have used this defence in similar cases. However, Judge Orrick noted that while cryptocurrency is growing, it has not reached an economic significance comparable to other sectors like energy or student loans.
Despite this, the court allowed Kraken’s ‘fair notice’ defence to remain in place. Kraken claimed it wasn’t adequately informed by the SEC about how its activities might violate securities laws. The case, which began in November 2023, is part of the SEC’s ongoing efforts to regulate the crypto industry, with Kraken accused of operating without proper registration as a securities exchange.
Brazil’s data protection authority, ANPD, has ordered Tools for Humanity (TFH), the company behind the World ID project, to cease offering crypto or financial compensation for biometric data collection. The move comes after an investigation launched in November 2023, with the ANPD citing concerns over the potential influence of financial incentives on individuals’ consent to share sensitive biometric data, such as iris scans.
The World ID project, which aims to create a universal digital identity, uses eye-scanning technology developed by TFH. The ANPD’s decision also reflects its concerns over the irreversible nature of biometric data collection and the inability to delete this information once submitted. Under Brazilian law, consent for processing such sensitive data must be freely given and informed, without undue influence.
This is not the first regulatory issue for World ID, as Germany’s data protection authority also issued corrective measures in December 2023, requiring the project to comply with the EU’s General Data Protection Regulations. Meanwhile, the value of World Network’s native token, WLF, has dropped significantly, falling by over 8% in the past 24 hours and 83% from its peak in March 2023.
Dean Norris, famed for his role as Hank Schrader in Breaking Bad, had his X account hacked to promote a fraudulent memecoin. The coin, DEAN, which briefly reached a market cap of over $8 million, was part of a pump-and-dump scheme. Norris confirmed the hack on 26 January, stating that the coin was a ‘complete, fake scam’ and slamming Reddit users who blamed him for the incident.
The hackers used Norris’s likeness in a doctored video and images to deceive people into thinking he was endorsing the token. Although the promotional posts were eventually removed, screenshots of the fraudulent content circulated online. Blockchain data showed a massive spike in the coin’s value, which quickly collapsed after the scam was exposed.
It is not the first time Norris has been targeted by crypto fraudsters. In November, his account was also hijacked in a similar scheme, with connections to other high-profile account takeovers. Norris, who rarely uses X and does not have a Telegram account, revealed he was unaware of the hack until friends alerted him.
Binance co-founder Changpeng ‘CZ’ Zhao has voiced strong support for government transparency, advocating for all public spending to be tracked on the blockchain. It comes after reports suggesting Elon Musk and the Department of Government Efficiency (DOGE) are exploring blockchain to improve fiscal accountability and address the federal deficit in the United States. In a post on 25 January, CZ argued that all government expenditures should be recorded on an immutable public ledger, stressing that “public spending” should be fully transparent.
The call for onchain tracking of government spending has sparked widespread debate online, particularly among advocates of small government and fiscal responsibility. Blockchain’s transparency could offer a solution to rising government debt and fiscal irresponsibility, as the immutable nature of the ledger would make it impossible to alter past transactions.
In light of the ongoing global fiscal challenges, including the US’s mounting $36 trillion national debt, CZ’s suggestion aligns with the broader discussion about the role of blockchain in promoting sound monetary and fiscal policies. Fixed-supply assets like Bitcoin are increasingly seen as a hedge against currency inflation, and some, including former President Trump, have suggested using Bitcoin to pay off national debt.
The idea of tracking government spending on the blockchain continues to gain traction as a potential method for increasing transparency and reducing inefficiencies within government finances.
Eurozone banks should embrace a digital euro to counter United States President Donald Trump’s new push to promote dollar-backed stablecoins globally, European Central Bank (ECB) board member Piero Cipollone stated on Friday. Cipollone warned that stablecoins, which function similarly to money market funds, could further erode banks’ revenues and customer base, strengthening the need for an ECB-backed digital currency.
A digital euro would provide a secure, centralised online wallet guaranteed by the ECB but managed by private banks, allowing even unbanked individuals to make payments. However, eurozone banks have raised concerns about losing deposits to this digital alternative. Cipollone emphasised that such a move would safeguard Europe’s financial system from potential disruptions caused by stablecoins gaining global traction.
While the ECB continues to experiment with a digital euro, a final decision depends on European lawmakers approving the necessary legislation. Meanwhile, Trump’s executive order on Thursday prohibited the Federal Reserve from issuing its own digital currency. Over 40 countries, including China and Russia, are already piloting central bank digital currencies, putting pressure on the eurozone to accelerate its digital efforts.
