Coin Bytes

The Kingdom of Bhutan has announced that it will use 10,000 Bitcoin from its reserve to support the development of the Gelephu Mindfulness City (GMC), a special administrative territory. GMC, which is situated in the Southern Bhutanese town of Gelephu, was established in 2024 as Bhutan’s new economic center in an effort to prevent young Bhutanese from leaving the country by generating high-value local jobs. It is intended to draw companies from a variety of industries, such as banking, tourism, green energy, technology, healthcare, and agriculture. The city is a place to advance Bitcoin mining in Bhutan and provides regulatory flexibility for fintech and cryptocurrency companies. According to its website, it encompasses around 10% of Bhutan, or 1,544 square miles.

The Bank of Canada has indicated that it will only approve high-quality stablecoins related to central bank currencies, ensuring that stablecoins function as “good money” under the country’s planned stablecoin laws, which are due in 2026. “We want stablecoins to be good money, like bank notes or money on deposit at banks,” said Governor Tiff Macklem addressing the Montreal Chamber of Commerce on Tuesday. Macklem envisions stablecoins being tied at a one-to-one ratio to a central bank currency and backed by “high-quality liquid assets” that can be quickly changed into cash. Typically, such assets include Treasury bills and government bonds. His comments follow Canada’s lengthy 2025 budget report, which stated that stablecoin issuers must retain appropriate reserves, set redemption plans, and apply various risk management frameworks, including steps to secure personal and financial data.

Twenty One Capital’s shares dropped more than 20% during its NYSE launch, which did not go as planned. Investors’ reluctance to pay more for the stock than the value of its underlying Bitcoin holdings suggests that they are wary of companies that use a lot of Bitcoin. The sell-off shows that the market is growing more discriminating, giving real asset backing precedence above mere excitement or bitcoin exposure. It suggests that investors are growing more cautious when it comes to Bitcoin-linked stocks, putting tangible assets and transparency ahead of narrative-driven excitement.

Kevin Hassett, director of the United States National Economic Council and a former front-runner for Federal Reserve chair, has recently faced criticism from senior figures close to President Trump, with concerns about his close ties to the president and the potential impact on confidence in the Fed’s independence.

The United States Financial Stability Oversight Council (FSOC) stated in its 2025 annual report that it has softened its stance on crypto assets and stablecoins, no longer viewing them as an imminent systemic danger. The FSOC touted the GENIUS Act, which went into effect in July, as providing a federal regulatory framework for payment stablecoins, giving greater clarity while encouraging U.S. stablecoin innovation. The research eliminated previous cautions about run risks and market concentration, noting that the majority of on-chain activity is related to legitimate use rather than illicit finance.

American Bitcoin Corp, a Bitcoin miner funded by the Trump family, added 261 $BTC, raising its total holdings to 5,044 $BTC, according to Bitcoin Treasury.

Aptos experienced a significant increase in activity, accumulating $386.2 million in stablecoins in just 24 hours, more than any other blockchain. This type of rush usually indicates that new capital is entering the network, with users preparing for trade, DeFi, or other on-chain activities. Stablecoins are frequently a sign of “dry powder,” and this surge indicates more confidence in Aptos as a location to park and deploy cash. Aptos is in the spotlight since it leads all networks in stablecoin inflows, indicating its growing importance in the broader crypto community.

Brazil’s Federal Police have launched Operation Kryptolaundry to investigate an alleged crypto fraud and money-laundering network worth approximately R$2.7 billion (~$500 million). Authorities are investigating how criminals may have utilised cryptocurrencies to transfer and conceal unlawful funds. The operation’s goal is to find the money, identify those guilty, and prevent additional illicit action.

Davide Crapis, AI lead for the Ethereum Foundation, believes that a platform that claims to encourage free expression should publish its algorithm optimization goals. Vitalik Buterin, co-founder of Ethereum, went on to propose that every algorithmic choice be zero-knowledge proven, ideally with content and engagement timestamps recorded on-chain to avoid censorship or time manipulation, and that the whole algorithm code be revealed after 1-2 years.

One of the front-runners to succeed the current head of the US Federal Reserve, Kevin Hassett, has minimised worries that U.S. President Donald Trump could influence the Fed by claiming that Trump’s opinions will have “no weight” on agency decisions. Some are worried that Trump wants to replace much of the FOMC’s leadership in order to expand his influence throughout the institution, as the announcement of the new Fed chair is anticipated in mid-January.