3 major developments that spurred crypto adoption in 2024

In 2024, global cryptocurrency adoption surged as Bitcoin broke price records and governments began integrating crypto into their financial frameworks. From Bitcoin’s historic milestones to Europe’s regulatory strides, 2024 set the stage for crypto’s mainstream integration.

Cointelegraph 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

Bitcoin may be adopted as a savings technology by the United States government during the next four years under the incoming administration of President-elect Donald Trump.

Known as one of the most anticipated crypto-related bills — the Bitcoin Act championed by Wyoming Senator Cynthia Lummis — proposes the creation of a strategic Bitcoin reserve.

The Bitcoin reserve proposal is gaining significant support thanks to Trump’s victory in the November election and the incoming Republican Party Senate majority, according to Anastasija Plotnikova, co-founder and CEO of Fideum.

With bipartisan support, the bill could be accepted during the next four years. “State-level momentum is building, with initiatives such as Pennsylvania’s Bitcoin Strategic Reserve Act serving as a model for broader adoption,” Plotnikova said.

The idea of a strategic Bitcoin reserve received support from both sides of the political aisle, including from Democratic Representative Ro Khanna, the first Democratic lawmaker to back a Bitcoin reserve.

The states of Texas and Pennsylvania have also made similar proposals.

Bitcoin may eventually surpass the $1 million price tag if the Bitcoin Act is accepted by US lawmakers, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most notable cryptographers in the industry.

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 is designed to provide clear rules for stablecoin issuance, reserve management and redemption, enhancing market stability and consumer protection.

A Binance spokesperson told Cointelegraph that MiCA’s framework may guide other jurisdictions. “By setting clear rules on issuance, reserve management and redemption, MiCA enhances market stability and consumer protection, while also fostering innovation through legal certainty,” the spokesperson said.

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,” added the Binance representative.

The regulations, fully effective on Dec. 30, 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 is growing 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. The Bitcoin-friendly nation is also discussing similar agreements with over 25 other countries.

On Dec. 11, 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).

Speaking to Cointelegraph, Reyes said Argentina’s robust and innovative blockchain industry and El Salvador’s technological expertise will “create a highly productive partnership.”

The partnership marks a significant milestone for Bitcoin adoption in Latin America, according to Ryan Lee, chief analyst at Bitget Research, who told Cointelegraph:

“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.” 

Related: Vancouver mayor proposes Bitcoin adoption to fight inflation

The partnership may also inspire neighboring countries to adopt more crypto-friendly policies, which would encourage broader investor participation, added Lee.

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.

The Bhutan government-labeled wallet held over $1.1 billion worth of BTC as of Dec. 14, according to Arkham Intelligence data.

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.

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.

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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