The Reserve Bank of India (RBI) is taking a cautious approach to expanding its central bank digital currency (CBDC), the e-rupee, as officials prioritise understanding its long-term implications. Deputy Governor T. Rabi Sankar emphasised that while CBDCs could transform cross-border payments, trade settlements, and remittances, the risks and uncertainties surrounding the technology remain a concern.
Launched in December 2022, the e-rupee has seen limited adoption, with just 1 million retail transactions by mid-2024. This slow uptake has been partly supported by incentives, such as salary distributions in the digital currency. Despite this, the RBI has no fixed timeline for a broader rollout, preferring to assess the potential impact on the financial system before proceeding.
Deputy Governor Michael Debabrata Patra has raised additional concerns, warning that CBDCs could destabilise traditional banking. He suggested that during financial crises, digital currencies might be seen as “safe havens,” increasing the risk of bank withdrawals and possible “bank runs.” These uncertainties underscore why the RBI is maintaining its measured stance, ensuring that any expansion is informed and mitigates risks.
The European Central Bank (ECB) has raised concerns over a potential bubble in stocks tied to AI, warning that inflated expectations could lead to a sharp market correction. In its latest Financial Stability Review, the ECB highlighted the growing reliance of global markets, particularly in the US, on a small group of tech firms driving the AI boom. This concentration, it cautioned, could trigger widespread instability if these companies fail to meet earnings expectations.
Adding to the risks, the ECB pointed out that investors are accepting low premiums for equities and bonds while many funds are maintaining minimal cash reserves. This leaves markets vulnerable to liquidity shortages, potentially forcing asset sales that could accelerate price declines. Open-ended investment funds, in particular, were flagged for significant liquidity mismatches that could exacerbate any downturn.
The ECB also underscored broader economic challenges, including rising trade fragmentation, a concern amplified by the protectionist policies signaled by US President-elect Donald Trump. Such measures could harm eurozone growth, compounding vulnerabilities as governments like Italy and France face borrowing at much higher interest rates in the coming years. The ECB urged fiscal prudence to manage these pressures effectively.
Donald Trump’s media company, Trump Media and Technology Group, is reportedly in advanced negotiations to acquire Bakkt, a crypto trading platform backed by the Intercontinental Exchange. According to sources cited by the Financial Times, the deal would be an all-stock acquisition.
News of the talks caused Bakkt’s shares to skyrocket by nearly 66% before trading was temporarily halted due to volatility. Neither Trump Media nor Bakkt has commented on the matter, while the Intercontinental Exchange declined to respond.
If finalised, the deal would deepen Trump’s ties to the cryptocurrency industry, which he has actively supported long before the US presidential election. In a related move, Trump recently launched a new crypto initiative called World Liberty Financial.
Gemini has launched its cryptocurrency trading platform in France, tapping into the nation’s growing interest in digital assets and its supportive regulatory environment. The expansion follows Gemini’s registration as a Virtual Asset Service Provider earlier this year, enabling French users to trade or store over 70 digital assets via its web and mobile platforms.
The platform supports funding through local payment methods, including debit cards, bank transfers, and Apple Pay, with transactions available in both Euros and British Pounds. Institutional investors can also benefit from Gemini’s advanced ActiveTrader™ platform and over-the-counter trading services, offering deep liquidity and competitive pricing.
France has positioned itself as a leader in the global crypto market, driven by a robust regulatory framework and rising adoption rates. According to Gemini’s 2024 Global State of Crypto report, 18% of French citizens now own digital assets, with nearly half of past owners planning to re-enter the market within a year. Women represent 35% of French crypto owners, one of the highest percentages globally.
This move marks another milestone for Gemini, which recently secured in-principle approval for a Major Payment Institution license from Singapore’s Monetary Authority. The firm aims to leverage France’s trust in digital assets and expand its presence in the European market over the coming months.
At the G20 Summit in Rio de Janeiro, Chinese President Xi Jinping warned against allowing AI to become the exclusive domain of wealthy nations. Speaking at the global forum, Xi called for stronger international governance and cooperation to ensure equitable access to AI technologies.
Xi highlighted China’s commitment to supporting developing countries, unveiling a joint initiative with G20 partners to improve access to scientific and technological innovations in the Global South. The Chinese leader also cautioned against protectionist policies, such as tariffs on Chinese goods, which he argued undermine global trade and the transition to green economies.
The remarks come as Xi tours Latin America, echoing similar criticisms of economic barriers he raised at the APEC forum in Peru. His appeal for openness and collaboration underscores China’s broader efforts to position itself as a champion of equitable global development.
Keppel DC REIT will acquire full ownership of two data centres in Singapore, KDC SGP 7 and KDC SGP 8, as part of a $1.03 billion divestment deal. The acquisition involves Keppel’s Connectivity Division transferring its 51% stake in a joint venture with Cuscaden Peak Investments to Keppel DC REIT. Keppel will retain operational and management roles for the facilities.
The transaction aims to bolster Keppel DC REIT’s income stability while unlocking potential growth opportunities, including rental increases and expanded capacity. CEO Loh Hwee Long highlighted the deal’s immediate benefits, describing it as accretive to distribution per unit and supportive of long-term portfolio strength.
To fund the acquisition, Keppel DC REIT announced plans for an equity fundraising effort targeting approximately S$1 billion. New units will be priced between S$2.074 and S$2.128, providing additional financial stability for the purchase.
Keppel’s share of the divestment price is estimated at S$280 million. The move further strengthens the company’s commitment to the data centre industry while maintaining a key management role within its facilities.
The Thai government will extend its digital wallet scheme to a second phase, covering four million people and distributing 40 billion baht, according to Finance Minister Pichai Chunhavajira.
Around 14.5 million people benefitted from the initial phase, which was part of a nationwide economic stimulus effort aimed at boosting consumer spending.
The programme is expected to reach a total of 45 million individuals once fully implemented, cementing its role as a flagship government initiative.
Officials in Thailand are positioning the digital wallet scheme as a cornerstone of the country’s recovery strategy, with significant investments planned to stimulate growth.
Africa’s largest mobile operator, MTN, is exploring partnerships with low-Earth-orbit (LEO) satellite providers to improve internet access in rural and remote areas, CEO Ralph Mupita announced on Monday. Satellite-based internet, increasingly popular in Africa through providers like Elon Musk’s Starlink, offers high-speed connectivity where traditional infrastructure is costly or impractical.
MTN is conducting trials with several LEO satellite operators and considering becoming a reseller for enterprise customers in specific regions. Competitors like Vodacom and Cell C are also embracing LEO partnerships, with Vodacom teaming up with Amazon’s Project Kuiper.
Mupita emphasised the need for regulatory fairness, calling for satellite providers to meet the same requirements as terrestrial operators, such as compliance with data privacy and spectrum access rules. While Starlink is operational in parts of Africa, regulatory hurdles remain in countries like South Africa, where a clear framework for satellite internet is still being developed.
With AI adoption surging, data centers are bracing for a 160% jump in electricity consumption by 2030, driven by the energy demands of GPUs. Sagence AI, a startup led by Vishal Sarin, is addressing this challenge by developing analog chips that promise greater energy efficiency without sacrificing performance.
Unlike traditional digital chips, Sagence’s analog designs minimise memory bottlenecks and offer higher data density, making them a viable option for specialised AI applications in servers and mobile devices. While analog chips pose challenges in precision and programming, Sagence aims to complement, not replace, digital solutions, delivering cost-effective and eco-friendly alternatives.
Backed by $58M in funding from investors like TDK Ventures and New Science Ventures, Sagence plans to launch its chips in 2025. As it scales operations, the startup faces stiff competition from industry giants and will need to prove its technology can outperform established systems while maintaining lower energy consumption.
Perplexity, an AI-driven search startup, has unveiled a new shopping hub to attract users and compete with Google’s dominance in search. Backed by Amazon founder Jeff Bezos and Nvidia, the platform offers visually rich product cards in response to shopping-related queries, integrating with platforms like Shopify to provide real-time product details.
The rollout includes features like ‘Snap to Shop,’ which uses photos to suggest products and a Merchant Program that allows retailers to share their offerings with Perplexity. Initially available in the US, the service will expand to other markets at a later date.
This move comes as Perplexity raises new investments at a reported $9 billion valuation and seeks to compete with OpenAI, which recently introduced enhanced search features for ChatGPT. The startup aims to leverage AI-powered tools to boost its presence in e-commerce and attract both users and merchants.
