2025 set to be a strong year for cryptoassets

2025 set to be a strong year for cryptoassets

RMIT Senior Lecturer of Software Engineering and crypto expert Dr Jeff Nijsse anticipates a bright outlook for Bitcoin and digital assets in 2025, amid record prices and changing political landscapes.

Bitcoin price crossed USD100,000 for the first time in December 2024, finishing the year with a remarkable 120% increase. Couple this with the upcoming inauguration of President Donald Trump on 20 January, which brings a crypto-friendly administration into the White House, there is optimism surrounding crypto adoption and innovation in digital assets.

There is a lot of talk about the US buying Bitcoin and holding it as a reserve asset, which would place the US in a small group of nations along with El Salvador and Bhutan that are using Bitcoin as a state store of value. Seven other countries including the US, UK, and China have Bitcoin from asset seizures but not as part of their public monetary strategy.

This is the modern version of central banks buying up gold to strengthen their economic position. Once a few well-known governments start buying Bitcoin, it will likely open the door for more to do the same.

Trump, previously a cryptocurrency skeptic, gave the keynote at the Bitcoin conference in Nashville last year saying that his administration would make it a policy to “keep 100% of all the Bitcoin the US government currently holds or acquires into the future”. His newly appointed AI and Crypto Czar, David Sacks, is working with Senator Cynthia Lummis on the reserve bill and general digital asset legislation. This might generate a domino effect, prompting other countries to follow suit.

bitcoins over dollar bills The new Trump administration is expected to usher in crypto-friendly policies. (Photo: Pexels)

Bitcoin is not merely a form of money; it is also a decentralised network that manages and secures the ledger. Recently, the Bitcoin network celebrated its 16th anniversary, having mined its first block on 3 January 2009. As the network matures, an increasing number of individuals are expressing interest in the digital commodity.

As the VND continues to weaken against the USD, more and more people are looking to alternatives to save their money, and Bitcoin is the cryptocurrency of choice. Vietnam has the third highest rate of cryptocurrency adoption globally as of 2023, and the highest in Southeast Asia. However, Vietnam is falling behind in the APAC region regarding digital asset innovation and regulation.

The mBridge consortium is a Chinese initiative to use Central Bank Digital Currencies (CBDCs), or digital currencies issued by central banks, for example, the e-CNY, in cross-border settlements. This project includes partnerships with the Bank of Thailand and the Hong Kong Monetary Authority among others. mBridge is currently at a minimum-viable product stage.

Hong Kong has continued to embrace digital assets by launching exchange-traded funds (ETFs) for Bitcoin and Ethereum in April of last year, just months after the US simultaneously launched 11 Bitcoin ETFs. These ETFs allow investors and fund managers to gain exposure to Bitcoin without directly purchasing and holding the asset. Importantly, they are overseen by the local financial regulator, for example the Securities and Futures Commission in Hong Kong.

In 2024, the Monetary Authority of Singapore granted licenses to OKX and Gemini exchanges, and now has 81 crypto exchanges in operation, although they do not presently have any crypto ETFs available to investors.

For now, Vietnam is dragging its heels, and while owning and trading bitcoin is not illegal, it still cannot be used as payment for goods and services. This makes it difficult for businesses and startups to embrace the technology without clear ground rules.

Dr Jeff Nijsse, Senior Lecturer of Software Engineering, RMIT University Vietnam Dr Jeff Nijsse, Senior Lecturer of Software Engineering, RMIT University Vietnam

2025 is set to be a great year for Bitcoin and cryptocurrency, and for investors, entrepreneurs, and builders. Hopefully, for Vietnam, we see the development of a legal framework for crypto regulation as promised by the Government’s national strategy on the application and development of blockchain technology. The strategy hopes to clarify the legal environment as well as develop human and technological resources, which could help Vietnam catch up with regional leaders like Singapore and Hong Kong in embracing crypto innovation.

As the global crypto landscape evolves, the country's ability to develop policies while maintaining appropriate oversight will determine its role in the digital asset future.

Story: Dr Jeff Nijsse, Senior Lecturer of Software Engineering, School of Science, Engineering & Technology, RMIT University Vietnam

14 January 2025
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