Donald Trump’s return to the political stage has sent ripples through the financial markets, particularly in the realm of digital assets. His administration has actively championed the integration of Bitcoin and other cryptocurrencies into the U.S. strategic reserves—a landmark move that has drawn global attention and paved the way for deeper institutional involvement
When I arrived in Serbia a few years ago, one of the most surprising discoveries was that the country had already begun shaping a legal framework for digital assets. In fact, Serbia had passed its law even before the European Union introduced its MiCA regulation.
Looking at the broader picture, we can draw intriguing parallels between the development of the internet and the evolution of cryptocurrencies. In the early days of the internet, few could have predicted its all-encompassing influence on modern life. Similarly, cryptocurrencies are still in their infancy, yet their potential applications are boundless.
Scepticism surrounding cryptocurrencies remains high, but rejecting blockchain technology outright is akin to someone in the 1990s dismissing the internet. Just as not all internet companies are created equal, the same applies to cryptocurrencies. One cannot simply ‘disbelieve in cryptocurrencies’— rather, one may choose to dismiss certain digital assets based on their fundamentals. Categorising them all under a single umbrella would be as misguided as lumping together all internet companies.
WHERE ARE WE NOW?
Digital assets, as regulators prefer to call them, represent records of value stored on blockchain technology. They serve both as a means of exchange and an investment instrument, with decentralised verification ensuring transparency and security. Every transaction is recorded immutably, preventing any possibility of alteration or deletion.
Serbia took a significant step forward in 2021 by enacting the Law on Digital Assets, positioning itself ahead of many developed economies. However, one critical issue persists—banking support. Despite full regulatory compliance under the National Bank of Serbia, including an official payment code for digital assets, no Serbian bank was willing to open an account for us. Ironically, financial institutions in Switzerland, Germany, and Austria were far more open to collaboration. This paradox is further underscored by the fact that some of these banks’ parent institutions actively engage in blockchain and cryptocurrency initiatives abroad. Take Raiffeisen Bank, for instance— its Austrian division has an entire blockchain division and established partnerships with cryptocurrency exchanges, while such endeavours remain off-limits in Serbia.
Fortunately, over time, certain banking partners recognised the business potential and extended their support.
LESSONS FROM HISTORY – PAYPAL AND THE ONLINE BANKING REVOLUTION
Innovation in the banking sector has often originated outside traditional institutions. Many are unaware that the first online banking transaction did not come from a major bank—it was facilitated by Stanford Credit Union in 1994 for its students and professors. Mainstream adoption of online banking only took off in 1999, thanks to PayPal.
The rapid evolution of blockchain infrastructure, increasingly clear regulatory frameworks, and growing institutional interest all indicate that cryptocurrencies will soon be fully integrated into the global financial system
Elon Musk’s first venture, X.com, aimed to establish a fully digital bank. Following its merger with Peter Thiel’s company, PayPal was born, revolutionising financial transactions. Banks, which initially resisted digital payments, ultimately had no choice but to integrate this technology into their offerings. A similar transformation is unfolding today, with cryptocurrencies leading the next wave of financial innovation. Traditional financial institutions are gradually recognising their inevitability.
INSTITUTIONAL ADOPTION AND MARKET GROWTH
A defining trend of 2024, which is set to continue into 2025, is the institutional adoption of Bitcoin and other digital assets. The entry of major financial players—particularly Wall Street investment funds— has marked a turning point. Regulated Bitcoin exchange-traded funds (ETFs) have enabled largescale investors to securely allocate capital into this digital asset. In their first year alone, Bitcoin ETFs attracted inflows exceeding $100 billion, making them the most successful ETF products in history.
Beyond Bitcoin, stablecoins such as Tether (USDT) are playing an increasingly pivotal role in global payments. Businesses can now use stablecoins to execute international transactions, bypassing conventional banking systems, thereby reducing costs and settlement times.
Trump’s presidency has significantly accelerated these trends. His administration’s commitment to digital assets has further legitimised the sector, encouraging other nations to consider similar strategies. Perhaps even more importantly, U.S. banks have recently been granted the ability to provide custody, staking, and mining services for digital assets—an under- the-radar development with far-reaching implications.
CRYPTO IN BUSINESS – PRACTICAL APPLICATIONS
Despite the common perception of cryptocurrencies as speculative instruments, their practical applications are expanding rapidly. In Serbia, businesses are already exploring several avenues:
Supplier Payments – Companies can enter barter agreements where digital assets replace traditional currency.
Investment Hedge – More businesses are allocating funds into Bitcoin to hedge against inflation and currency devaluation.
Tokenisation of Assets – Real estate, artwork, and other physical assets can be tokenised and traded via blockchain technology.
THE FUTURE – WHAT LIES AHEAD?
If we consider how the internet has become an inseparable part of our lives, we must ask ourselves: where will cryptocurrencies be in the next 10 or 20 years? Today, we stand at the beginning of mainstream adoption. The rapid evolution of blockchain infrastructure, increasingly clear regulatory frameworks, and growing institutional interest all indicate that cryptocurrencies will soon be fully integrated into the global financial system.
Bitcoin is often referred to as ‘digital gold’—a universally recognised store of value. However, Bitcoin has a crucial advantage over gold: while gold is measured in tons and requires physical handling, Bitcoin can be transferred globally with a single click.
The world is changing, and digital assets are an integral part of this transformation. Those who grasp their potential today will be the pioneers of the digital economy tomorrow.