Argentina’s President Javier Milei is doubling down on crypto adoption as part of his broader economic reform agenda. 

Known for his libertarian ideals and criticism of central banks, Milei’s policies indicate a bold shift toward embracing digital currencies, such as Bitcoin, alongside traditional currencies. 

Interestingly, a recent disclosure confirms that his second year in office could introduce massive changes, particularly around monetary policy and free currency competition.

The Push for Currency Freedom

In his speech, President Javier Milei discussed plans for his second year in office, focusing on economic reform, reducing government size, and expanding freedoms. He emphasized fostering foreign investment and cutting public spending.

Milei announced plans to abolish the long-standing currency exchange restrictions, a move expected to end reliance on the Central Bank of Argentina. 

This means that citizens will have the freedom to transact in any currency of their choice, including cryptocurrencies like Bitcoin. This policy excludes tax payments, which will still require Argentine pesos for now. 

The change seeks to stabilize the economy, reduce inflation, and create a sustainable growth path by aligning with global financial standards.

Notably, the policy emphasizes on free competition, allowing individuals to choose currencies that best suit their needs. This aligns with Milei’s vision of closing the Central Bank entirely, which he believes will eradicate inflation.

This strategy could benefit Bitcoin and crypto adoption in the country, which has already seen a sharp increase in recent times. The Argentine President has already confirmed his positive endorsement for Bitcoin, a move that has bolstered confidence in the asset among Argentinians. 

Milei’s Pro-Bitcoin Stance

Milei’s pro-Bitcoin stance predates his presidency. As a vocal advocate, he has praised Bitcoin’s decentralized nature and its ability to counteract inflation. His economic vision closely mirrors the policies of El Salvador, where Bitcoin has become legal tender. 

However, Milei’s approach presents citizens with a choice rather than mandating cryptocurrency use. He has actively supported the idea of contracts denominated in Bitcoin and other cryptocurrencies, a policy already gaining traction in Argentina. 

Argentina’s economy has long been plagued by hyperinflation, making the peso an unreliable store of value. As a result, cryptocurrencies and stablecoins have seen high adoption rates in the country. 

Argentina ranks among the top nations globally for crypto use, with its low energy costs supporting a thriving Bitcoin mining industry. For 2024, the country sits 15th on the Chainalysis Crypto Adoption Index globally and fourth in Latin America.

Despite advancements, Milei’s administration faces criticism over regulatory hurdles that could hinder adoption. For instance, recent laws tightening oversight of virtual asset service providers triggered backlash from crypto advocates. Nonetheless, the president remains committed to fostering a Bitcoin-friendly environment.

Milei’s policies are also expected to attract international investment. His administration has held discussions with private investors and the International Monetary Fund (IMF), a necessary step toward broader financial reform.

Interestingly, the United States could witness a similar pro-crypto stance within its government, as the forthcoming Donald Trump administration promises to foster the industry’s growth.

US-based Bitcoin ATM operator Byte Federal has reported a possible data breach, which would affect up to 58,000 users.

In a filing with Maine’s attorney general today, the Florida-based Bitcoin ATM operator disclosed a breach. Byte Federal noted in the application that it discovered the compromise on November 18, about 49 days after the actual September 30 attack.

Notably, the Bitcoin ATM operator quickly discontinued operations upon observing the compromise. While disclosing that the attack did not lead to any asset loss, the company pointed out that a data breach affecting thousands of its users had occurred during the attack.

Possible Data Breach of 58,000 Users

Meanwhile, Byte Federal noted in the Thursday filing that the hackers gained access to the personal information of about 58,000 users, of which 111 are Maine residents. The firm said that the breached data included names, addresses, phone numbers, social security numbers, transaction activities, government-issued IDs, and pictures of users.

Notably, the Bitcoin ATM giant revealed that the hackers had accessed its database through vulnerable third-party software. After its team uncovered the breach, Byte Federal noted it had hard reset all its customers’ accounts and changed all internal passwords.

Meanwhile, Byte Feredal maintains that there is no proof that the hackers accessed the said data. However, it has taken all precautionary measures to ensure that users’ concerns are well handled.

Byte Federal Issues Security Tips

Notably, the Bitcoin ATM operator advised its users to follow certain security procedures to ensure the safety of their accounts. One of them included changing their login details, including usernames and passwords.

Furthermore, the ATM service provider stated that the system would require extra layers of detail verification for precautionary reasons. 

Meanwhile, Byte Federal has over 1,350 Bitcoin ATMs in the US and ranks eighth among the country’s top ten crypto ATM operators. Notably, its fleet of local Bitcoin ATMs across America commands a notable 4.3% of the entire machine in the region.

Ukraine is moving forward with plans to legalize crypto assets like Bitcoin (BTC) by the first quarter of 2025.

Danylo Hetmantsev, the head of the Ukrainian Parliament Committee for Finance, Tax, and Customs Policy, confirmed this development while speaking at the Ekonomichna Pravda Forum on Domestic Investment Opportunities.

Ongoing Efforts to Legalize Crypto in Ukraine

During the conference, Hetmantsev provided insight into the ongoing legislative efforts and the country’s cautious approach toward cryptocurrency regulation.

He revealed that a parliamentary working group is currently finalizing a draft law to regulate crypto assets. The legislation, developed in collaboration with the National Bank of Ukraine and the International Monetary Fund (IMF), is expected to be ready for its first reading after the New Year.

“Our goal is to pass this law and ensure cryptocurrency is legalized in Ukraine during the first quarter of 2025,” Hetmantsev stated.

No Tax Breaks on Crypto Assets

However, the anticipated legalization will not include tax exemptions for cryptocurrency transactions. The proposed tax framework will follow a model similar to the one used for securities, where profits are taxed when virtual assets are converted into fiat currency. 

Hetmantsev explained that, after consulting with European experts and the IMF, a cautious approach had been adopted regarding tax exemptions. “Allowing exemptions could potentially lead to tax evasion in traditional markets,” he added.

The legislation on cryptocurrency taxation has already taken a significant step forward. In November 2023, a draft law on taxing virtual asset transactions was registered in the Ukrainian parliament. The adoption of this law is expected to be the final step toward fully legalizing cryptocurrencies in the country.

Meanwhile, other countries like Russia and South Korea are taking different approaches to crypto taxation. South Korea recently announced differing taxation on crypto assets for another two years, citing the need to refine the legislation further.

Last month, Russian President Vladimir Putin approved a law that treats crypto assets as property. The new law also exempts the mining and sale of crypto from VAT.

Income from mining will be taxed as in-kind income. At the same time, transactions involving digital currency are subject to a two-tier tax rate: 13% for earnings up to 2.4 million rubles, while 15% applies for incoming above this threshold.

AMP makes history by becoming the first major Australian-based superannuation fund to invest in Bitcoin (BTC).

Local media outlet Australian Financial Review (AFR) reports today that AMP invested $27 million in Bitcoin as part of its diversification strategy. The investment represents 0.05% of AMP’s total funds worth $57 billion.

It bears mentioning that the company made the investment in May when Bitcoin was trading at around $60,000. However, the price has skyrocketed above the $100,000 mark ever since, netting the superannuation fund a profit of 66.66%.

AMP Execs React, Say Bitcoin Potential Is Too Big to Ignore 

Although AMP invested in Bitcoin earlier this year, the move became public knowledge recently following a LinkedIn post from the company’s Senior Portfolio Manager, Steve Flegg.

Notably, Flegg characterized the investment as ‘taking the plunge’ as Bitcoin looked to wrap up an outstanding year. The investment comes as most fund managers in the retirement savings sectors are ignoring Bitcoin due to its volatility. 

Explaining the motive behind AMP’s Bitcoin investment, Flegg pointed out that BTC’s potential has become too big to ignore despite the risk associated with the asset. 

Anna Shelly, AMP’s Chief Investment Officer, also commented on the bold move, indicating that it is part of the company’s diversification strategy. She pointed out that the investment was also driven by the sentiment and momentum associated with the premier asset. 

Furthermore, she acknowledged the risk involved in crypto while pointing out that AMP’s users have benefitted from the investment decision. The CIO suggested that the company is cautious about being too exposed to crypto, as the $27 million allocated to Bitcoin marks its upper-risk limit in the asset class.

Mixed Reactions Trail AMP Bitcoin Investment 

Meanwhile, the investment has triggered mixed reactions among financial experts. Some experts, like BTC Markets CEO Caroline Bowler, expressed enthusiasm about AMP’s Bitcoin investment.

However, others, such as Westpac group chief economist Luci Ellis, did not comment directly on the AMP’s investment but criticized Bitcoin for failing to fulfill the functions of money and lacking income-generation potential. 

US Companies Embracing Bitcoin 

While most Australian companies are still skeptical about Bitcoin, their U.S. counterparts have been embracing the world’s largest cryptocurrency by market cap. These companies are doubling down on the asset following Donald Trump’s re-election. 

In particular, MicroStrategy recently scooped another 21,550 Bitcoin worth $2.1 billion, bringing its total holdings to 423,650 BTC. 

At press time, Bitcoin trades at $100,877, marking a surge of 2.62% in the past 24 hours.

The Bitcoin market is attracting a considerable amount of capital amid a recent surge in institutional interest globally.

2024 will go down as a landmark year for crypto, especially Bitcoin. Following the launch of spot Bitcoin ETFs in January 2024, the asset class has seen unprecedented institutional adoption.

Amid this wave of institutional adoption has also come never-before-seen demand.

According to CryptoQuant founder Ki Young Ju, $80 billion is flowing into the Bitcoin market every month.

The prominent analyst shared this view in an X post on Thursday, December 12, noting that, in addition to this high capital influx, most of the total capital the asset has attracted has come this year.

“Nearly half of the capital that has entered the Bitcoin market over the past 15 years was added this year,” he wrote, adding, “If you don’t understand what this means, you still don’t understand Bitcoin.”

The metric is significant in the context of Bitcoin’s limited supply. Following the asset’s April 2024 halving, about 13,500 Bitcoin is now mined per month, at current rates that is around $1.35 billion.

With $80 billion flowing into the market within the same timeframe, this suggests that Bitcoin is seeing significantly higher demand than supply, which is supportive of its price.

Indeed, even though Bitcoin’s price is at record highs, above $100,000 at the time of writing, a chart shared by Young Ju suggests that the asset is trading at its realized cap, often indicative of market bottoms. The realized cap represents the value of each coin when it is last moved.

With the new Bitcoin supply set to reduce every four years, the impact of this demand on price will likely only grow stronger if such demand is sustained.