In 2024, the global cryptocurrency adoption surge reached unprecedented heights as Bitcoin broke price records and governments began integrating crypto into their financial frameworks. This year will be remembered for setting the stage for crypto’s mainstream integration.
United States Eyes Strategic Bitcoin Reserve
One of the most significant developments in 2024 was the proposal to create a strategic Bitcoin reserve by the United States government under the incoming administration of President-elect Donald Trump. The Bitcoin Act, championed by Wyoming Senator Cynthia Lummis, aims to establish a strategic reserve to promote the adoption of Bitcoin as a savings technology.
Lummis Bitcoin Act
The Bitcoin Act has gained significant support due to Trump’s victory in the November election and the incoming Republican Party Senate majority. Anastasija Plotnikova, co-founder and CEO of Fideum, stated that "state-level momentum is building, with initiatives such as Pennsylvania’s Bitcoin Strategic Reserve Act serving as a model for broader adoption."
Bipartisan Support
The proposal has received support from both sides of the political aisle, including Democratic Representative Ro Khanna, who became the first Democratic lawmaker to back a Bitcoin reserve. The states of Texas and Pennsylvania have also made similar proposals.
Potential Price Surge
According to Adam Back, co-founder and CEO of Blockstream, if the Bitcoin Act is accepted by US lawmakers, Bitcoin may eventually surpass the $1 million price tag.
Europe Adopts MiCA Framework
The European Union’s Markets in Crypto-Assets Regulation (MiCA) became the first comprehensive crypto regulatory framework, setting a global benchmark. MiCA provides clear rules for stablecoin issuance, reserve management, and redemption, enhancing market stability and consumer protection.
MiCA as Global Benchmark
MiCA’s comprehensive approach will serve as a "global benchmark" for other jurisdictions that may look to align their own frameworks with MiCA for more "cross-border compatibility." The regulations have already prompted financial giants to expand crypto-based offerings. Societe Generale, for example, has partnered with Bitpanda to launch the MiCA-compliant stablecoin EUR CoinVertible (EURCV), a euro-denominated digital currency.
Bitcoin Adoption in Latin America
El Salvador was the world’s first country to adopt Bitcoin as legal tender in 2021, resulting in over $31 million worth of profit on its 3rd Bitcoin adoption anniversary in 2024. El Salvador signed a mutual agreement with Argentina to help both countries strengthen their digital asset industries.
Collaboration and Training Agreement
Juan Carlos Reyes, president of the National Commission of Digital Assets (NCDA) in El Salvador, announced the signing of a mutual collaboration and training agreement with Roberto Silva, president of Argentina’s National Securities Commission (CNV). The partnership marks a significant milestone for Bitcoin adoption in Latin America.
Potential Impact
The partnership may also inspire neighboring countries to adopt more crypto-friendly policies, which would encourage broader investor participation. Ryan Lee, chief analyst at Bitget Research, stated that "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."
Bhutan, Brazil, and US ETFs
Other notable Bitcoin adoption stories include September revelations that Bhutan’s government has been mining and holding BTC for over five years. El Salvador and Argentina aren’t the only significant crypto adopters in the Latam region. Four of the top 20 countries in terms of global crypto adoption are from Latin America, namely Brazil, Mexico, Venezuela, and Argentina.
LATAM Countries by Crypto Value Received
Brazil is the second-largest Latin American country, having received over $90.3 billion worth of value through cryptocurrency in 2024, according to an Oct. 9 Chainalysis report. Other notable adoption milestones include the US Bitcoin exchange-traded funds surpassing 27% in institutional ownership, major Swiss bank ZKB launching Bitcoin trading offerings, and the German government selling Bitcoin, netting over $2.8 billion in profit.
Outlook for 2025
While 2024 was considered a significant year for crypto adoption, market analysts are expecting another year of upside for Bitcoin’s price. Bitcoin seems poised for further adoption in 2025, fueled by bullish cycle top predictions ranging from $160,000 to above $180,000, according to asset management giant VanEck.
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