Digital business models Archives | Page 408 of 571

Abu Dhabi institutions plan a dirham-pegged stablecoin

Three major Abu Dhabi institutions are teaming up to launch a dirham-pegged stablecoin, pending regulatory approval. The partners include Abu Dhabi’s sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC).

The stablecoin will be regulated by the UAE’s central bank and backed by the dirham. It aims to support use cases like machine-to-machine communication and artificial intelligence. The project will operate on the ADI blockchain, created by the ADI Foundation, a non-profit focused on blockchain adoption.

The initiative seeks to position the UAE as a leader in global blockchain innovation. It also aims to strengthen the country’s digital infrastructure and provide new financial opportunities.

The UAE joins other nations exploring alternatives to US dollar-backed stablecoins, as global interest in national digital currencies grows.

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The stablecoin market remains largely dominated by Tether

Tether (USDT) continues to lead the stablecoin market with a 66% market share, while USDC follows at 28%, according to Nansen’s 25 April report. Ethena’s USDe stablecoin ranks a distant third with just over 2%.

Although USDC has grown faster, Tether’s dominance is expected to persist due to its large user base and the market’s ‘winner-takes-most’ nature. Tether remains the most profitable stablecoin issuer, with profits of nearly $14 billion expected in 2024.

USDC’s growth has accelerated since November, thanks to a more favourable regulatory environment. It is particularly appealing to institutions seeking regulatory clarity. However, traditional financial institutions, such as PayPal and Fidelity, are increasing competition with their stablecoins.

Ethena’s USDe stablecoin remains competitive, offering yield-bearing features with a 19% annualised yield. It has been integrated into both CEXs and DeFi protocols, positioning it for future growth.

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South Korea’s ruling party targets crypto deregulation in its new agenda

South Korea’s People Power Party (PPP) has pledged to approve spot crypto ETFs and remove the ‘one exchange, one bank’ rule before the end of the year.

These moves are aimed at increasing competition and offering consumers more choice in the crypto market.

Additionally, the PPP plans to institutionalise corporate and institutional investor participation in crypto and legalise spot crypto ETFs. Nonprofits will also be allowed to trade crypto starting from Q2.

The PPP’s reforms also include a ‘global standard’ regulatory framework for stablecoins and the creation of a Virtual Asset Special Committee under the presidential office.

The shift mirrors global trends towards crypto deregulation, drawing comparisons with the US’s Trump-era policies.

PPP’s proposals depend on the results of South Korea’s upcoming election on 3 June. The Democratic Party’s candidate, Lee Jae-myung, has a strong lead in the polls, which could affect the implementation of these reforms.

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Mastercard launches stablecoin payment support

Mastercard is stepping up its crypto ambitions by enabling stablecoin transactions through new partnerships. The payment giant announced a collaboration with crypto exchange OKX, processor Nuvei, and fintech firm Circle.

The goal is to build an ecosystem where users can spend stablecoins and merchants can accept them.

A new card issued with OKX will allow stablecoin holders to pay directly using crypto, while Nuvei and Circle will support the infrastructure behind these transactions.

Mastercard’s Chief Product Officer said stablecoins have the potential to simplify global payments. They can also empower both consumers and businesses by offering more choices.

Mastercard plans to allow users to spend stablecoins from their wallets at over 150 million merchant locations worldwide that already accept its cards.

The move comes as regulatory discussions around stablecoins continue in the US. The Securities and Exchange Commission recently stated that certain dollar-pegged tokens do not qualify as securities. However, it stopped short of offering clarity on yield-bearing or algorithmic stablecoins, leaving questions open for future decisions.

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IBM commits $150 billion to US tech

IBM has announced a major investment plan worth $150 billion over the next five years to solidify its role as a global leader in advanced computing and quantum technologies.

The move also aims to support US economic growth by expanding local innovation and manufacturing, instead of relying heavily on overseas operations.

Over $30 billion of the funding will be directed towards research and development, helping IBM advance in areas such as mainframe and quantum computer production.

According to CEO Arvind Krishna, this commitment ensures that IBM remains the core hub of the world’s most sophisticated computing and AI capabilities. The company already operates the largest fleet of quantum computing systems and intends to continue building them in the US.

The announcement comes amid a wider shift among major tech firms investing heavily in US-based infrastructure.

Companies like Nvidia and Apple have each pledged massive sums—Nvidia alone is preparing to invest up to $500 billion—in response to President Donald Trump’s call for greater domestic manufacturing through policies like reciprocal tariffs.

By focusing investment at home instead of abroad, IBM joins a growing list of tech leaders aligning with government efforts to revitalise American industry while maintaining their global competitiveness in AI and next-generation computing.

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Duolingo backs AI over manual work

Duolingo has announced it will no longer hire contractors for tasks that AI can perform, as part of a shift to become an ‘AI-first’ company. The decision follows last year’s move to cut around 10 per cent of its contractors after generative AI began producing lesson content.

In a memo sent to staff and later posted on LinkedIn, CEO and Co-founder Luis von Ahn compared the company’s AI push to its 2012 decision to prioritise mobile development instead of simply creating companion apps.

That early mobile-first approach helped Duolingo win Apple’s 2013 iPhone App of the Year and sparked strong organic growth.

The company will now embed AI deeply into its operations. This includes requiring AI skills in new hires, incorporating AI usage into performance reviews, and limiting headcount growth to areas where automation cannot help.

Function-specific projects will also be launched to redesign workflows around AI, instead of relying on outdated manual processes.

Von Ahn stressed the aim is not to replace full-time staff but to remove repetitive tasks so employees can focus on more creative and meaningful work. Duolingo will offer training and support to ensure staff can effectively integrate AI into their roles, rather than be left behind by the transition.

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El Salvador keeps buying Bitcoin under the IMF radar

El Salvador continues quietly accumulating Bitcoin, even as it complies with conditions set by the International Monetary Fund (IMF). Although the government paused Bitcoin activity to secure a $1.4 billion loan, the Bitcoin Office kept buying. It added 32 BTC last month, now holding over 6,160 BTC worth $584 million.

The small daily purchases adhere to the country’s ‘one Bitcoin a day’ policy.

The IMF confirmed El Salvador’s fiscal sector is meeting its non-accumulation pledge, but the Bitcoin Office operates outside those fiscal definitions. The technical loophole has allowed the country to continue acquiring Bitcoin without breaching the agreement.

The reforms agreed with the IMF include scaling back the Chivo wallet initiative and removing Bitcoin’s mandatory status as legal tender.

Despite the pressure, President Nayib Bukele remains committed to the Bitcoin strategy. In January, El Salvador’s Legislative Assembly passed amendments removing Bitcoin as a compulsory payment method and tax payment option.

These changes, effective from 1 May, were necessary to unlock IMF funding. They also opened access to an additional $2 billion in development financing aimed at stabilising the economy and reducing debt, which recently reached 85% of GDP.

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ChatGPT adds ad-free shopping with new update

OpenAI has introduced significant improvements to ChatGPT’s search functionality, notably launching an ad-free shopping tool that lets users find, compare, and purchase products directly.

Unlike traditional search engines, OpenAI emphasises that product results are selected independently instead of being sponsored listings. The chatbot now detects when someone is looking to shop, such as for gifts or electronics, and responds with product options, prices, reviews, and purchase links.

The development follows news that ChatGPT’s real-time search feature processed over 1 billion queries in just a week, despite only being introduced last November.

With this rapid growth, OpenAI is positioning ChatGPT as a serious rival to Google, whose search business depends heavily on paid advertising.

By offering a shopping experience without ads, OpenAI appears to be challenging the very foundation of Google’s revenue model.

In addition to shopping, ChatGPT’s search now offers multiple enhancements: users can expect better citation handling, more precise attributions linked to parts of the answer, autocomplete suggestions, trending topics, and even real-time responses through WhatsApp via 1-800-ChatGPT.

These upgrades aim to make the search experience more intuitive and informative instead of cluttered or commercialised.

The updates are being rolled out globally to all ChatGPT users, whether on a paid plan, using the free version, or even not logged in. OpenAI also clarified that websites allowing its crawler to access their content may appear in search results, with referral traffic marked as coming from ChatGPT.

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Tech-driven future ahead for Pakistan’s pharmaceutical sector

Pakistan’s pharmaceutical sector is increasingly adopting AI and advanced technologies to improve drug development and patient care. Industry leaders, including Haroon Qasim, note AI’s growing influence from molecule screening and drug safety monitoring to telemedicine and e-commerce platforms.

Companies now use AI to predict disease trends, assist doctors with instant medical information, and detect adverse drug reactions more rapidly. Startups and established firms alike are integrating AI into research, supply chain management, customer service, and regulatory processes.

Innovations such as machine learning for anomaly detection, IoT systems for automated production, and predictive analytics for logistics are reshaping the sector. in Pakistan Haroon Qasim highlighted these changes as vital steps toward building a smarter and healthier society.

Martin Dow Group further demonstrated its commitment to AI by hosting its first Tech Day, uniting global tech leaders to explore future collaborations. The company launched initiatives with SAP and Salesforce partners, signalling a deeper move into data-driven healthcare.

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Huawei develops Ascend 910D chip to rival Nvidia

Huawei Technologies is preparing to test its newest AI processor, the Ascend 910D, as it seeks to offer an alternative to Nvidia’s products following US export restrictions. The company has approached several Chinese tech firms to assess the technical feasibility of the new chip.

Extensive testing will follow to ensure the chip’s performance before it reaches the wider market. Sources claim Huawei aims for the Ascend 910D to outperform Nvidia’s H100 chip, widely used for AI training since 2022.

Huawei is already shipping large volumes of its earlier Ascend 910B and 910C models to state-owned carriers and private AI developers like ByteDance. Demand for these processors has risen as US restrictions tightened Nvidia’s ability to sell its H20 chip to China.

Increased domestic demand for Huawei’s AI hardware signals a shift in China’s semiconductor market amid geopolitical tensions. Analysts believe this development strengthens Huawei’s ambition to compete globally in the AI chip market.

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