Parties vying for power in Germany’s February 23 election have outlined diverging financial policies that could affect banking, taxation and cryptocurrency regulation. The conservative CDU/CSU alliance, leading in the polls, aims to strengthen Germany’s position as a financial hub, favouring tax incentives for start-ups and venture capital. Plans also include preserving the three-pillar banking system and increasing tax-free allowances while opposing a wealth tax.
The far-right Alternative for Germany (AfD), running second, proposes the most radical changes, calling for Germany to exit the euro and return to the Deutsche mark backed by gold. Advocating deregulation of Bitcoin and cryptocurrency trading, the party also opposes a digital euro and supports abolishing both the inheritance tax and wealth tax. Mainstream parties refuse to work with AfD, making its proposals unlikely to become policy.
Chancellor Olaf Scholz’s Social Democrats (SPD), currently trailing, pledge to tax the super rich and introduce a financial transaction tax. Plans also include reinstating the wealth tax and adjusting inheritance tax to increase contributions from multi-million and billion-euro estates. The Greens align with SPD on higher taxation for the wealthy and propose stricter cryptocurrency oversight, enhanced financial transparency and stronger sustainability regulations.
Polls indicate a potential shift in Germany’s financial landscape, with taxation, cryptocurrency policy and the country’s role in European finance among key issues shaping the election.
El Salvador has reversed its historic decision to make Bitcoin legal tender, following pressure from the International Monetary Fund (IMF). The law, enacted in 2021, required all businesses to accept Bitcoin alongside the US dollar, but many merchants struggled to adopt it. Widespread scepticism, technical issues, and Bitcoin’s volatility made it unpopular among the majority of Salvadorans.
While the policy brought some benefits, such as increased tourism and global attention, it failed to boost financial inclusion or significantly improve the economy. Reports show that by 2024, 92% of Salvadorans did not use Bitcoin for transactions, and only a small percentage of businesses accepted it. The Chivo wallet, launched to facilitate transactions, faced hacking incidents and technical difficulties, further eroding public trust.
The shift away from Bitcoin came after the IMF made it a condition for a $1.4 billion loan. El Salvador’s Congress agreed to remove Bitcoin’s legal tender status, ensuring that the government and businesses would no longer be required to accept it. However, Bitcoin remains legal for private trade, and the government has continued purchasing it, signalling an ongoing interest in cryptocurrency despite the policy change.
El Salvador has made another significant addition to its Bitcoin reserve, purchasing 12 BTC in just one day, as the cryptocurrency market saw a dip. The Central American country bought 11 Bitcoin for just over $1.1 million, with an average price of $101,816 per Bitcoin on 4 February. It later added one more BTC at $99,114, bringing its total Bitcoin holdings to 6,068 BTC, valued at over $554 million.
Despite a brief decline in Bitcoin’s price, which fell to around $96,000 before rebounding to approximately $98,000, El Salvador’s commitment to its Bitcoin strategy remains steadfast. The country’s Bitcoin Office proudly announced that El Salvador has accumulated 21 BTC in just one week and 60 BTC in the last 30 days, reinforcing the growth of its Strategic Bitcoin Reserve.
This latest round of Bitcoin purchases comes after President Nayib Bukele’s agreement with the International Monetary Fund (IMF) last month, where his government made adjustments to its Bitcoin policies. These included making Bitcoin adoption in the private sector voluntary and scaling back government involvement in the Chivo crypto wallet. However, the country’s commitment to acquiring Bitcoin remains unchanged, with further purchases planned for 2025.
Despite the IMF agreement, the government has shown no signs of abandoning its Bitcoin ambitions, continuing to buy Bitcoin even after the deal was struck. The country’s Bitcoin plans are expected to intensify, with El Salvador positioning itself as a global leader in Bitcoin adoption.
Tether, the world’s largest stablecoin issuer, is diving deeper into the world of artificial intelligence (AI) with several new applications in development. Tether Data, the company’s AI division, is working on a range of tools including AI Translate, AI Voice Assistant, and AI Bitcoin Wallet Assistant. These apps will focus on maintaining the privacy and self-custodial control over both data and money, according to CEO Paolo Ardoino.
The AI Bitcoin Wallet Assistant will allow users to interact with a chatbot interface to manage their BTC wallet, such as checking their balance or making transactions. Meanwhile, the AI Translate tool provides simple chatbot-based translation, and the AI Voice Assistant will enable voice responses instead of text. Tether plans to launch an open-source AI SDK platform, compatible with various devices including mobile phones and laptops.
Tether’s commitment to AI growth has been evident since 2023, with the company acquiring a stake in Northern Data Group, a European crypto miner specialising in cloud computing and generative AI. The firm also began a global recruitment drive for AI talent in March 2023, intending to innovate and set new industry standards.
The firm has been making significant strides in both the AI and crypto industries, as it reported record profits of $13 billion for 2024, and its USDT stablecoin has seen an all-time high market capitalisation of $141 billion. Tether’s AI platform is expected to launch by the end of Q1 2025.
Trump’s crypto czar, David Sacks, has argued that stablecoins could help maintain US dollar dominance, just as lawmakers push for clearer regulations in the sector. His statement came after Senator Bill Hagerty introduced the GENIUS Act, a bill aimed at setting legal standards for stablecoins and ensuring their reserves are backed mainly by US Treasury Bills.
At a press conference alongside key Republican lawmakers, Sacks outlined Trump’s digital asset strategy, suggesting that stablecoin regulation could be a priority under the administration. He also addressed questions about Trump’s plan for a Bitcoin reserve, stating that assessing its feasibility is a key goal for the crypto council, though he declined to confirm whether the US government would actively accumulate BTC.
Meanwhile, Congress appears to be accelerating efforts to formalise crypto policy, with key committees forming dedicated groups to oversee digital asset regulations. Lawmakers, including Senate Banking Committee Chair Tim Scott and House Financial Services Committee Chair French Hill, have signalled a coordinated push to establish a comprehensive framework for stablecoins and broader crypto adoption.
President Donald Trump has temporarily halted a 25% tariff on Mexican imports following an agreement with President Claudia Sheinbaum. The deal, which grants a one-month pause, comes after Mexico pledged to deploy 10,000 National Guard troops to curb drug trafficking and illegal migration at the US border.
The agreement follows Trump’s decision to impose tariffs on Mexico, Canada, and China as part of a broader strategy to pressure foreign governments on trade and security. While the pause provides temporary relief, negotiations will continue, led by senior US officials including Secretary of State Marco Rubio. Trump remains optimistic that a long-term solution can be reached.
Financial markets responded positively to the news, with US stocks recovering from early losses and the Mexican peso stabilising. Bitcoin, which had slumped to $91,178, rebounded to nearly $98,000 as investors adjusted to the easing tensions. However, concerns remain over impending tariffs on Canada and China, which could still trigger economic uncertainty.
European central banks may start accumulating Bitcoin as early as 2025, according to blockchain expert Fiorenzo Manganiello. It follows the rollout of the EU’s Markets in Crypto-Assets (MiCA) regulation, which aims to stabilise the crypto market by introducing clear legal frameworks. Manganiello believes that MiCA’s clarity will encourage institutional investors and reduce Bitcoin’s volatility, positioning it as a legitimate financial asset.
He predicts that central banks could use Bitcoin as a hedge against traditional market instability, diversifying their reserves and strengthening their defences. Manganiello stated that Bitcoin is becoming “too dominant to ignore,” and even the most traditional financial institutions, including central banks, are expected to embrace it.
The MiCA framework, introduced at the end of 2024, will replace the fragmented national regulations that previously governed crypto across the EU. With MiCA offering a unified regulatory approach, Manganiello argues that it will breathe new life into the European crypto scene and potentially lead to Bitcoin becoming a standard asset for central banks.
The cryptocurrency market experienced a significant downturn on 1 February, following the announcement of new tariffs imposed by the US. President Donald Trump’s decision to apply 25% tariffs on goods from Canada and Mexico and 10% on Chinese imports led to a market-wide sell-off. Bitcoin’s price dropped by over 5%, reaching a low of around $91,200, before rebounding slightly to about $94,000. Despite the recovery, Bitcoin remains approximately 13% below its all-time high of $109,000.
This price drop has had a ripple effect on the wider crypto market. In the past 24 hours, Ethereum saw a sharp decline of nearly 20%, while other major altcoins such as Ripple, Solana, and Binance Coin also took significant hits, with losses reaching as high as 22%. Trading volume surged by over 200%, indicating heightened selling pressure, which often signals market panic.
Bitcoin’s recent crash follows a period of positive price movement after President Trump’s inauguration, but the new tariff policies have shaken investor confidence. With the overall global crypto market cap dropping by almost 12%, concerns are mounting that long-term investors are capitulating, selling at a loss or lower profits. Market experts, including BitMEX CEO Arthur Hayes, have warned that the risk of a financial crisis could be looming, adding to the uncertainty in the markets.
El Salvador’s Legislative Assembly has amended its Bitcoin Law, making it optional for businesses to accept Bitcoin as payment. The change comes as part of the conditions set by the International Monetary Fund (IMF) for a $1.4 billion loan aimed at strengthening the country’s economy.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender alongside the US dollar. However, the mandatory Bitcoin acceptance for businesses faced criticism due to the cryptocurrency’s volatility and the population’s limited understanding of digital currencies.
The recent reforms allow businesses to choose whether to accept Bitcoin, and the government will no longer accept Bitcoin for tax payments. This move aims to address concerns raised by the IMF about the potential risks to financial stability and consumer protection while still maintaining Bitcoin’s legal status in the country.
In response to these concerns, the government also plans to scale back its involvement in Bitcoin-related initiatives, including reducing the use of the Chivo Wallet app.
Norway’s central bank has built up over $500 million in indirect Bitcoin exposure through its investments in MicroStrategy and other crypto-focused companies. Research from K33 shows that Norway’s exposure to Bitcoin has nearly tripled in the past year as allocations to crypto-related firms have increased.
The country’s sovereign wealth fund, managed by Norges Bank Investment Management, holds 0.72% of MicroStrategy’s total shares, worth around $514 million as of December 2024. This translates to an indirect holding of roughly 3,214 Bitcoin. Alongside MicroStrategy, the fund also has investments in Tesla, Coinbase, Marathon Digital, Riot Platforms, and Metaplanet, adding another $61 million in exposure.
While Norges Bank’s strategy follows rule-based sector weighting rather than direct Bitcoin purchases, its growing involvement in crypto-linked firms signals increasing institutional acceptance of Bitcoin. Similar investment trends have been seen in Switzerland, where central banks have also allocated funds to MicroStrategy amid its expanding Bitcoin reserves.
