As a researcher with a decade-long career in financial markets, I can confidently say that 2024 was a pivotal year for cryptocurrencies, marking a significant shift towards mainstream adoption. The events of this year have not only reshaped my perspective on the potential of digital currencies but also reinforced my belief in their transformative power.
2024 witnessed a significant increase in the global use of cryptocurrencies, with Bitcoin reaching new price highs and various governments incorporating cryptocurrencies into their financial systems. This year marked important milestones for Bitcoin and saw Europe make strides in its regulatory approach, paving the way for mainstream adoption of cryptocurrencies.
CryptoMoon has put together some of the most significant events that bolstered mainstream cryptocurrency adoption in 2024, from a potential United States strategic Bitcoin (BTC) reserve to the world’s first crypto regulatory framework and the latest countries exploring crypto adoption.
United States eyes strategic Bitcoin reserve
It’s possible that Bitcoin could be embraced as a form of savings technology by the U.S. government within the next four years, under the new administration led by President-elect Donald Trump.
As a dedicated analyst, I’m closely following the progression of a highly awaited piece of legislation in the cryptocurrency sector – the Bitcoin Act, spearheaded by Senator Cynthia Lummis from Wyoming. This groundbreaking bill proposges the establishment of a tactical Bitcoin reserve, which I find particularly intriguing.
Support for the Bitcoin reserve proposal is growing substantially due to Donald Trump’s win in the November elections and the upcoming Republican-led Senate, as stated by Anastasija Plotnikova, co-founder and CEO of Fideum.
Supported by both parties, the bill might be approved over the following four years. As stated by Plotnikova, state-level enthusiasm is growing, with acts like Pennsylvania’s Bitcoin Strategic Reserve Act potentially setting a precedent for wider implementation.
As a crypto investor, I’ve noticed growing bipartisan backing towards the concept of a strategic Bitcoin reserve. Even Democratic Representative Ro Khanna, the pioneer among Democrats, has voiced his support for such a reserve.
The states of Texas and Pennsylvania have also made similar proposals.
If the Bitcoin Act is passed by U.S. legislators as proposed, Bitcoin’s value could potentially reach or exceed $1 million per unit, based on predictions made by Adam Back – a pioneering figure in the world of cryptography who co-founded and leads Blockstream, the inventor of Hashcash.
Europe adopts MiCA framework
The European Union’s Markets in Crypto-Assets Regulation (MiCA) established the world’s initial all-encompassing regulatory structure for cryptocurrencies, serving as a leading example globally.
As a researcher, I’d express it like this: In my work, I’ve come across the Markets in Crypto-Assets (MiCA) regulation. This comprehensive framework is intended to establish transparent guidelines for the issuance, management of reserves, and redemption of stablecoins. By doing so, MiCA aims to promote market stability and safeguard consumer interests, ensuring a more secure environment for all participants in the crypto-asset market.
As a researcher delving into the world of cryptocurrencies, I find myself intrigued by the potential impact of MiCA’s framework. This regulatory structure, as expressed by a Binance representative, could serve as a blueprint for other geographical regions. The clarity provided by MiCA on matters such as token issuance, reserve management, and redemption bolsters market stability and safeguards consumers. Furthermore, it promotes innovation by offering a degree of legal certainty.
The extensive strategy of MiCA is expected to function as an international standard, inspiring other regions to harmonize their systems with MiCA for improved “cross-border harmony,” according to the Binance spokesperson.
By December 30th, these new regulations have spurred major financial institutions to broaden their crypto services. For instance, Societe Generale has teamed up with Bitpanda to introduce the Euro Convertible Stablecoin (EURCV), a digital currency tied to the euro and compliant with the MiCA regulations.
Bitcoin adoption is growing in Latin America
In 2021, El Salvador became the first nation to make Bitcoin a recognized form of currency, leading to approximately $31 million in profits by its third Bitcoin adoption anniversary in 2024.
El Salvador has entered into a reciprocal pact with Argentina, aiming to bolster the digital asset sectors of both nations. This Bitcoin-embracing country is additionally negotiating comparable accords with more than 25 other countries.
On December 11th, Juan Carlos Reyes, head of the National Commission of Digital Assets (NCDA) in El Salvador, revealed that he had agreed to cooperate and exchange training with Roberto Silva, president of Argentina’s Securities Commission (CNV).
In conversation with CryptoMoon, Reyes stated that Argentina’s thriving and inventive blockchain sector, combined with El Salvador’s advanced technology skills, will foster a very effective collaboration.
This strategic alliance represents a notable advancement in the integration of Bitcoin within Latin America, as per Ryan Lee, chief analyst at Bitget Research, who shared this perspective with CryptoMoon.
“This collaboration has the potential to enhance Bitcoin’s legitimacy and transactional infrastructure, particularly in regions like Argentina, where inflation has spurred interest in alternative value systems.”
As an analyst, I posit that this partnership could serve as a catalyst for surrounding nations to embrace more cryptocurrency-friendly regulations. This shift could potentially attract a wider pool of investors, as suggested by Lee.
Bhutan, Brazil, and US ETFs
One interesting tale about Bitcoin adoption is the news from September suggesting Bhutan’s administration has been mining and possessing Bitcoin for more than five years.
As of December 14th, a digital wallet owned by the Bhutanese government was reportedly found containing approximately $1.1 billion in Bitcoin, based on information from Arkham Intelligence.
As a crypto investor, I can’t help but notice that it’s not just El Salvador and Argentina leading the way in crypto adoption within Latin America. In fact, an impressive four out of the top 20 global adopters of cryptocurrencies are from this region – Brazil, Mexico, Venezuela, and yes, you guessed it, Argentina.
In 2024, it’s estimated that Brazil will have been the second most significant Latin American nation in terms of value received from cryptocurrencies, with approximately $90.3 billion transacted, as reported by Chainalysis on October 9th.
Significant steps towards widespread acceptance of Bitcoin include:
2024 was viewed as an important year for the widespread use of cryptocurrencies, but market experts predict that Bitcoin’s value may continue to rise in the coming year as well.
It appears that Bitcoin could see increased use in 2025, driven by optimistic forecasts suggesting a peak price between $160,000 and over $180,000 from the significant investment firm VanEck.
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2024-12-28 16:09