Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (like the dollar or euro), cryptocurrencies operate on decentralized networks based on blockchain technology. A blockchain is a distributed ledger that records transactions across multiple computers in a secure and transparent way, making it very difficult to alter or hack the transaction history.
Here are the latest cryptocurrency updates as of March 12, 2025:
1. Deutsche Börse’s Clearstream to Offer Bitcoin and Ether Custody Services
Deutsche Börse’s subsidiary, Clearstream, will begin offering cryptocurrency custody and settlement services for institutional clients starting next month, focusing on Bitcoin and Ether. This expansion follows the introduction of their crypto trading platform for institutional investors last year and aligns with the European Union’s Markets in Crypto-Assets regulation (MiCA) introduced in 2023.
2. President Trump Proposes Strategic Cryptocurrency Reserve
President Donald Trump has proposed establishing a U.S. strategic cryptocurrency reserve, including Bitcoin, Ethereum, XRP, Solana, and Cardano. This initiative aims to position the U.S. as the “crypto capital of the world” and stimulate industry growth. The announcement led to significant price surges in these cryptocurrencies, though prices later declined.
3. U.S. SEC Revises Crypto Firm Registration Requirements
The acting chief of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, announced plans to potentially abandon a proposal requiring some cryptocurrency firms to register as alternative trading systems. Initially proposed in 2022, this requirement aimed to increase oversight but faced criticism. This shift reflects a more lenient regulatory approach under the current administration.
4. Coinbase Re-enters Indian Market Amid Regulatory Changes
Coinbase, the largest U.S. cryptocurrency exchange, is re-entering the Indian market after receiving regulatory approval to register with India’s Financial Intelligence Unit. This move reflects a shift in India’s stance on digital currencies, influenced partly by President Trump’s support for cryptocurrencies. Coinbase plans to offer retail services initially, followed by investment products.
5. Bitcoin Price Hits Four-Month Low Amid Market Volatility
Bitcoin recently hit a four-month low of $76,867, recovering to $80,480. This decline is attributed to President Trump’s announcement of a strategic Bitcoin reserve that did not meet investor expectations, as it excluded plans for government Bitcoin purchases. Broader market concerns about tariffs and economic slowdown have also contributed to the volatility.
Key Features of Cryptocurrencies:
- Decentralization: Unlike traditional currencies (fiat), cryptocurrencies operate without a central authority (like a bank or government). This decentralized nature is often associated with increased transparency and security.
- Blockchain Technology: Most cryptocurrencies operate on a blockchain, a distributed ledger that records all transactions across a network. Each “block” in the blockchain contains transaction data and is linked to the previous one, forming a chain.
- Security: Cryptocurrencies use cryptographic techniques to secure transactions. This ensures that transactions cannot be altered or forged.
- Anonymity: While transactions are recorded on the blockchain, they do not necessarily reveal the identity of users. Many cryptocurrencies offer a higher level of privacy compared to traditional banking systems.
- Mining and Staking:
- Mining: Some cryptocurrencies like Bitcoin rely on a process called mining, where powerful computers solve complex mathematical problems to validate transactions and add new blocks to the blockchain.
- Staking: In proof-of-stake systems like Ethereum 2.0, users “stake” their coins in the network to help secure it and receive rewards in return.
- Volatility: Cryptocurrencies are known for their volatility. Their values can fluctuate wildly within a short period of time, offering both significant opportunities and risks for investors.
Popular Cryptocurrencies:
- Bitcoin (BTC): The first and most well-known cryptocurrency, created in 2009 by an unknown individual or group using the pseudonym Satoshi Nakamoto. Bitcoin is often seen as “digital gold.”
- Ethereum (ETH): Known for its ability to execute smart contracts, Ethereum is a blockchain platform that supports decentralized applications (dApps) and its native cryptocurrency, Ether (ETH).
- Ripple (XRP): Ripple is both a digital payment protocol and a cryptocurrency. It’s designed to facilitate fast and low-cost international money transfers.
- Litecoin (LTC): Created by Charlie Lee in 2011, Litecoin is similar to Bitcoin but offers faster transaction times and lower fees.
- Cardano (ADA): A blockchain platform that uses a research-driven approach to build a more sustainable and scalable cryptocurrency ecosystem.
- Solana (SOL): A high-speed blockchain platform designed for decentralized applications and cryptocurrencies, known for its scalability and low transaction fees.
Uses of Cryptocurrencies:
- Investment: Many people buy cryptocurrencies like Bitcoin and Ethereum as a store of value or for potential price appreciation.
- Payments: Cryptocurrencies can be used to make payments online, including purchases at some merchants that accept them directly.
- Smart Contracts and Decentralized Applications (dApps): Ethereum and other platforms support the development of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These enable decentralized applications (dApps) that run on blockchain networks.
- Remittances: Cryptocurrencies can be used to send money across borders without needing to rely on banks or remittance services, often at lower fees.
- Decentralized Finance (DeFi): DeFi platforms use cryptocurrencies and smart contracts to recreate traditional financial systems (like lending, borrowing, and trading) without central intermediaries.
Risks:
- Regulatory Uncertainty: Many countries are still developing regulations around cryptocurrencies, and changes in laws can impact their use and value.
- Security Risks: While the blockchain itself is secure, exchanges and wallets can be vulnerable to hacks.
- Volatility: Cryptocurrencies are highly volatile, and investors can experience significant gains or losses over short periods.