In 2024, global cryptocurrency adoption skyrockets as Bitcoin breaks price records and governments begin to integrate cryptocurrency into their financial frameworks. From Bitcoin's historic milestones to Europe's regulatory advancements, 2024 has set the stage for the mainstream integration of cryptocurrency.
In this article, Bitcoin Magazine has compiled some of the most significant events driving mainstream cryptocurrency adoption in 2024, from the potential strategic Bitcoin reserve in the U.S. to the world's first cryptocurrency regulatory framework and the latest countries exploring cryptocurrency adoption.
The U.S. is eyeing a strategic Bitcoin reserve
The U.S. government may adopt Bitcoin as a savings technology in the next four years under the new administration of President-elect Donald Trump.
Known as one of the most anticipated cryptocurrency-related bills — The Bitcoin Act sponsored by Wyoming Senator Cynthia Lummis — proposes the establishment of a strategic Bitcoin reserve.
The Bitcoin Lummis Act | Source: Lummis.senate.gov
The Bitcoin reserve proposal is gaining significant support due to Trump's victory in the November elections and the upcoming Republican majority in the Senate, according to Anastasija Plotnikova, co-founder and CEO of Fideum.
With support from both parties, the bill could be accepted in the next four years. Plotnikova said:
"State-level momentum is increasing, with initiatives like Pennsylvania's Strategic Bitcoin Reserve Act serving as a model for broader adoption."
The idea of a strategic Bitcoin reserve has received support from both sides of the political spectrum, including Democratic Representative Ro Khanna, the first Democratic lawmaker to endorse the Bitcoin reserve.
The states of Texas and Pennsylvania have also proposed similar measures.
According to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most notable cryptographers in the industry, Bitcoin could eventually surpass the $1 million price mark if the Bitcoin Act is accepted by U.S. lawmakers.
Europe adopts MiCA framework
The European Union's Market in Crypto-Assets (MiCA) regulation has become the first comprehensive cryptocurrency regulatory framework, setting global standards.
MiCA is designed to provide clear rules for the issuance, management, and buyback of stablecoins, enhancing market stability and consumer protection.
A Binance spokesperson stated that the MiCA framework could guide other jurisdictions. The spokesperson said:
"By establishing clear rules for issuance, reserve management, and buybacks, MiCA enhances market stability and protects consumers, while fostering innovation through legal certainty."
MiCA's comprehensive approach will serve as a 'global standard' for other jurisdictions that may seek to align their own frameworks with MiCA for greater 'cross-border compatibility,' a Binance representative added.
The regulations, fully effective from December 30, have prompted major financial corporations to expand cryptocurrency-based services. For example, Societe Generale has partnered with Bitpanda to launch the compliant EUR CoinVertible (EURCV) stablecoin, a type of digital currency denominated in Euro.
Bitcoin adoption is increasing in Latin America
El Salvador became the first country in the world to adopt Bitcoin as legal tender in 2021, bringing in profits worth over $31 million on the 3rd anniversary of Bitcoin adoption in 2024.
El Salvador has signed a joint agreement with Argentina to help both countries strengthen their digital asset industries. This Bitcoin-friendly nation is also discussing similar agreements with more than 25 other countries.
On December 11, Juan Carlos Reyes, president of the National Digital Assets Commission (NCDA) in El Salvador, announced the signing of a cooperative and training agreement with Roberto Silva, president of the National Securities Commission of Argentina (CNV).
Reyes stated that Argentina's strong and innovative blockchain industry, along with El Salvador's technical expertise, will "create a highly effective partnership."
Juan Carlos Reyes (left) and Roberto Silva (middle) signed an agreement to promote digital asset cooperation between El Salvador and Argentina | Source: Juan Carlos Reyes
According to Ryan Lee, chief analyst at Bitget Research, this partnership marks a significant milestone for Bitcoin adoption in Latin America, who told Cointelegraph:
"This collaboration has the potential to enhance the legitimacy and trading infrastructure of Bitcoin, especially in regions like Argentina, where inflation has driven interest in alternative value systems."
This partnership may also inspire neighboring countries to adopt more cryptocurrency-friendly policies, which would encourage broader participation from investors, Lee added.
Bhutan, Brazil, and U.S. ETFs
Other notable stories about Bitcoin adoption include the revelation in September that the government of Bhutan has mined and held BTC for over 5 years.
Government-labeled wallet of Bhutan | Source: Arkham Intelligence
According to data from Arkham Intelligence, as of December 14, the government-labeled wallet of Bhutan has held over $1.1 billion in BTC.
El Salvador and Argentina are not the only countries significantly adopting cryptocurrency in the Latam region. Four of the top 20 countries for global cryptocurrency adoption come from Latin America, specifically Brazil, Mexico, Venezuela, and Argentina.
LATAM countries by cryptocurrency value received | Source: Chainalysis
Brazil is the second largest country in Latin America, having received over $90.3 billion in value through cryptocurrency in 2024, according to a Chainalysis report on October 9.
Other notable adoption milestones include U.S. Bitcoin exchange-traded funds surpassing 27% institutional ownership, Switzerland's major bank ZKB launching Bitcoin trading services, and the German government selling Bitcoin, generating over $2.8 billion in profit.
While 2024 is considered a crucial year for cryptocurrency adoption, market analysts are expecting another bullish year for Bitcoin.
Bitcoin appears to be ready for wider adoption in 2025, driven by peak bullish cycle predictions ranging from $160,000 to over $180,000, according to massive asset management company VanEck.
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