Interest payments to start for China’s digital yuan in 2026

A significant shift away from global views on central bank digital currencies has been made with the decision to allow China’s digital yuan to earn interest starting in January 2026. Wallet balances will now accrue interest at demand deposit rates, marking a shift from the widely held view that retail CBDCs should function purely as digital cash.

Central banks in Europe and the United States have long argued against interest-bearing CBDCs, warning they could destabilise financial systems by drawing deposits away from commercial banks.

Institutions such as the European Central Bank, the Federal Reserve and the Bank for International Settlements have stressed that digital currencies should not become savings instruments.

China’s move, however, effectively repositions the digital yuan closer to a deposit-like form of money rather than a simple cash substitute.

The policy applies to verified individual and corporate wallets, while anonymous wallets remain excluded. Digital yuan balances are also now covered by China’s deposit insurance scheme, offering the same protection as bank deposits.

Analysts say these design choices, combined with China’s two-tier distribution model that keeps commercial banks as intermediaries, aim to limit risks of bank disintermediation while encouraging wider adoption.

China’s decision could influence global debates as dozens of countries continue to explore the use of digital currencies. While Europe remains committed to a non-interest-bearing digital € and the United States has formally banned a retail CBDC, China is testing whether an interest-paying digital currency can coexist with traditional banking.

The experiment is likely to be closely watched as policymakers reconsider what role digital money should play in future financial systems.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Google showcases AI tool for visualising 2026 goals

An innovative approach has gained attention as Google shared a way to help users visualize their goals for 2026 using its Gemini AI platform.

In a post from the official Gemini account, users were invited to experiment with a prompt linked to Nano Banana Pro, turning future planning into a visual and shareable exercise.

The approach centres on a detailed image prompt that encourages users to create an illustrated vision board rather than a written list of resolutions.

By combining a knolling-style layout with hand-drawn aesthetics, notebook textures and playful annotations, the prompt aims to make goal-setting feel more personal and engaging.

Users are encouraged to customise the prompt by inserting their own aspirations, habits or milestones, allowing the AI to generate a tailored illustration. Cross-hatching, highlighter effects and handwritten notes give the images a deliberately imperfect, journal-like quality, despite being AI-generated.

The experiment reflects a broader trend of using generative AI for creative self-reflection rather than productivity alone. By framing goals as visual stories, Google is positioning Gemini as a tool that blends artistic expression with everyday planning.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Semiconductors move closer to space manufacturing

Space Forge, a UK company, has successfully activated a compact factory in orbit, proving its onboard furnace can operate at temperatures of around 1,000C. The breakthrough represents a major advance for space-based manufacturing.

The microwave-sized satellite was launched earlier this year and is operated remotely from mission control in Cardiff. Engineers have been monitoring its systems to validate manufacturing processes in space conditions.

Microgravity and vacuum environments allow semiconductor atoms to align more precisely than on Earth. These conditions produce significantly purer materials for electronics used in networks, electric vehicles and aerospace systems.

The company plans to build a larger orbital factory capable of producing materials for thousands of chips. Future missions will also test a heat shield designed to return manufactured products safely to Earth.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

India outlines plan to widen AI access

India’s government has set out plans to democratise AI infrastructure nationwide. The strategy focuses on expanding access beyond major technology hubs.

Officials aim to increase availability of computing power, datasets and AI models. Startups, researchers and public institutions are key intended beneficiaries.

New initiatives under IndiaAI and national supercomputing programmes will boost domestic capacity. Authorities say local compute access reduces reliance on foreign providers.

Digital public platforms will support data sharing and model development. The approach seeks inclusive innovation across education, healthcare and governance across India.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Data centre cluster in Tennessee strengthens xAI’s compute ambitions

xAI is expanding its AI infrastructure in the southern United States after acquiring another data centre site near Memphis. The move significantly increases planned computing capacity and supports ambitions for large-scale AI training.

The expansion centres on the purchase of a third facility near Memphis, disclosed by Elon Musk in a post on X. The acquisition brings xAI’s total planned power capacity close to 2 gigawatts, placing the project among the most energy-intensive AI data centre developments currently underway.

xAI has already completed one major US facility in the area, known as Colossus, while a second site, Colossus 2, remains under construction. The newly acquired building, called MACROHARDRR, is located in Southaven and directly adjoins the Colossus 2 site, as previously reported.

By clustering facilities across neighbouring locations, xAI is creating a contiguous computing campus. The approach enables shared power, cooling, and high-speed data infrastructure for large-scale AI workloads.

The Memphis expansion underscores the rising computational demands of frontier AI models. By owning and controlling its infrastructure, xAI aims to secure long-term access to high-end compute as competition intensifies among firms investing heavily in AI data centres.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

High-profile AI acquisition puts Manus back in focus

Manus has returned to the spotlight after agreeing to be acquired by Meta in a deal reportedly worth more than $2 billion. The transaction is one of the most high-profile acquisitions of an Asian AI startup by a US technology company and reflects Meta’s push to expand agentic AI capabilities across its platforms.

The startup drew attention in March after unveiling an autonomous AI agent designed to execute tasks such as résumé screening and stock analysis. Founded in China, Manus later moved its headquarters to Singapore and was developed by the AI product studio Butterfly Effect.

Since launch, Manus has expanded its features to include design work, slide creation, and browser-based task completion. The company reported surpassing $100 million in annual recurring revenue and raised $75 million earlier this year at a valuation of about $500 million.

Meta said the acquisition would allow it to integrate the Singapore-based company’s technology into its wider AI strategy while keeping the product running as a standalone service. Manus said subscriptions would continue uninterrupted and that operations would remain based in Singapore.

The deal has drawn political scrutiny in the US due to Manus’s origins and past links to China. Meta said the transaction would sever remaining ties to China, as debate intensifies over investment, data security, and competition in advanced AI systems.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

OpenAI secures massive funding round led by SoftBank

SoftBank Group has completed a $41 billion investment in OpenAI, marking one of the largest private funding rounds on record. The deal gives the Japanese conglomerate an estimated 11 percent stake in the ChatGPT developer.

The investment reflects SoftBank chief executive Masayoshi Son’s renewed focus on AI and supporting infrastructure. The company is seeking to capitalise on rising demand for the computing capacity that underpins advanced AI models.

SoftBank said the latest funding includes an additional $22.5 billion investment, following an earlier $7.5 billion injection in April. OpenAI also secured a further $11 billion through an expanded syndicated co-investment from other backers.

The funding values OpenAI at roughly $300 billion on a post-money basis, though secondary market transactions later placed the company’s valuation closer to $500 billion. The investment follows SoftBank’s recent agreement to acquire DigitalBridge Group, a digital infrastructure investor.

OpenAI remains a central beneficiary of the global surge in AI spending. The company is also involved in Stargate, a large-scale data centre project backed by SoftBank and other partners to support next-generation AI systems.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Hawaii warns residents about phishing using fake government sites

State officials have warned the public about a phishing campaign using the fake domain codify.inc to impersonate official government websites. Cybercriminals aim to steal personal information and login credentials from unsuspecting users.

Several state agencies are affected, including the departments of Labor and Industrial Relations, Education, Health, Transportation, and many others. Fraudulent websites often mimic official URLs, such as dlir.hi.usa.codify.inc, and may use AI-based services to entice users.

Residents are urged to verify website addresses carefully. Official government portals will always end in .gov, and any other extensions like .inc or .co are not legitimate. Users should type addresses directly into their browsers rather than clicking links in unsolicited emails or texts.

Suspicious websites should be reported to the State of Hawaii at soc@hawaii.gov to help protect other residents from falling victim to the scam.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

AI malware emerges as major cybersecurity threat

Cybersecurity experts are raising alarms as AI transitions from a theoretical concern to an operational threat. The H2 2025 ESET Threat Report shows AI-powered malware is now targeting systems globally, raising attack sophistication.

PromptLock, the first AI-driven ransomware, uses a dual-component system to generate unique scripts for each target. The malware autonomously decides to exfiltrate, encrypt, or destroy data, using a feedback loop to ensure reliable execution.

Other AI threats include PromptFlux, which rewrites malware for persistence, and PromptSteal, which harvests sensitive files. These developments highlight the growing capabilities of attackers using machine learning models to evade traditional defences.

The ransomware-as-a-service market is growing, with Qilin, Akira, and Warlock using advanced evasion techniques. The convergence of AI-driven malware and thriving ransomware economies presents an urgent challenge for organisations globally.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Belgium’s influencers seek clarity through a new certification scheme

The booming influencer economy of Belgium is colliding with an advertising rulebook that many creators say belongs to another era.

Different obligations across federal, regional and local authorities mean that wording acceptable in one region may trigger a reprimand in another. Some influencers have even faced large fines for administrative breaches such as failing to publish business details on their profiles.

In response, the Influencer Marketing Alliance in Belgium has launched a certification scheme designed to help creators navigate the legal maze instead of risking unintentional violations.

Influencers complete an online course on advertising and consumer law and must pass a final exam before being listed in a public registry monitored by the Jury for Ethical Practices.

Major brands, including L’Oréal and Coca-Cola, already prefer to collaborate with certified creators to ensure compliance and credibility.

Not everyone is convinced.

Some Belgian influencers argue that certification adds more bureaucracy at a time when they already struggle to understand overlapping rules. Others see value as a structured reminder that content creators remain legally responsible for commercial communication shared with followers.

The alliance is also pushing lawmakers to involve influencers more closely when drafting future rules, including taxation and safeguards for child creators.

Consumer groups such as BEUC support clearer definitions and obligations under the forthcoming EU Digital Fairness Act, arguing that influencer advertising should follow the same standards as other media instead of remaining in a grey zone.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!