Digital business models

Banks invest billions as blockchain goes mainstream

Traditional banks have invested over $100 billion in blockchain projects from 2020 to 2024, showing that digital assets are going mainstream. A report by Ripple, CB Insights, and the UK Centre for Blockchain Technologies reviewed over 10,000 deals and surveyed 1,800 finance leaders globally.

Despite regulatory uncertainty and market volatility, banks are boosting custody, tokenisation, and payment infrastructure investments.

Payment infrastructure attracted the most funding, followed by crypto custody and on-chain foreign exchange. About 25% of investments target firms supporting settlement and asset issuance rails.

Over 90% of finance executives expect blockchain and digital assets to have a significant impact on finance by 2028.

Banks focus on digital asset custody, stablecoins, and tokenised real-world assets, while consumer-facing crypto services remain less critical.

The report highlights that investment aims to modernise finance systems rather than fuel speculation. Many banks plan digital asset initiatives within three years, from tokenised bonds to interoperable layers for CBDCs and stablecoins.

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Zuckerberg’s billion-dollar AI buyout blocked by Aussie innovator

Andrew Tulloch, an Australian AI engineer raised in Perth, has reportedly rejected a US$1 billion (A$1.55 billion) compensation package from Mark Zuckerberg’s Meta.

Tulloch, a University of Sydney mathematics graduate with a near-perfect ATAR, co-founded the AI start-up Thinking Machines Lab earlier this year with former OpenAI CTO Mira Murati.

Thinking Machines Lab, focused on building safer, customisable multimodal AI systems, has already secured US$2 billion in seed funding and is now valued at $12 billion. Investors include major tech firms Nvidia, AMD and Cisco, and the Albanian government.

According to the Wall Street Journal, Meta attempted to acquire the company and later made direct offers to key employees. Tulloch declined the offer, which Meta dismissed as “inaccurate and ridiculous.”

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Eswatini advances digital vision with new laws, 5G and skills training

Eswatini is moving forward with a national digital transformation plan focused on infrastructure, legislation and skills development.

The country’s Minister of ICT, Savannah Maziya, outlined key milestones during the 2025 Eswatini Economic Update, co-hosted with the World Bank.

In her remarks, Maziya said that digital technology plays a central role in job creation, governance and economic development. She introduced several regulatory frameworks, including a Cybersecurity Bill, a Critical Infrastructure Bill and an E-Commerce Strategy.

Additional legislation is planned for emerging technologies such as AI, robotics and satellite systems.

Infrastructure improvements include the nationwide expansion of fibre optic networks and a rise in international connectivity capacity from 47 Gbps to 72 Gbps.

Mbabane, the capital, is being developed as a Smart City with 5G coverage, AI-enabled surveillance and public Wi-Fi access.

The Ministry of ICT has launched more than 11 digital public services and plans to add 90 more in the next three years.

A nationwide coding initiative will offer digital skills training to over 300,000 citizens, supporting wider efforts to increase access and participation in the digital economy.

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Moflin, Japan’s AI-powered robot pet with a personality

A fluffy, AI-powered robot pet named Moflin is capturing the imagination of consumers in Japan with its unique ability to develop distinct personalities based on how it is ‘raised.’ Developed by Casio, Moflin recognises its owner and learns their preferences through interactions such as cuddling and stroking, boasting over four million possible personality variations.

Priced at ¥59,400, Moflin has become more than just a companion at home, with some owners even taking it along on day trips. To complement the experience, Casio offers additional services, including a specialised salon to clean and maintain the robot’s fur, further enhancing its pet-like feel.

Erina Ichikawa, the lead developer, says the aim was to create a supportive sidekick capable of providing comfort during challenging moments, blending technology with emotional connection in a new way.

A similar ‘pet’ was also seen in China. Namely, AI-powered ‘smart pets’ like BooBoo are gaining popularity in China, especially among youth, offering emotional support and companionship. Valued for easing anxiety and isolation, the market is set to reach $42.5 billion by 2033, reflecting shifting social and family dynamics.

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Creative industries raise concerns over the EU AI Act

Organisations representing creative sectors have issued a joint statement expressing concerns over the current implementation of the EU AI Act, particularly its provisions for general-purpose AI systems.

The response focuses on recent documents, including the General Purpose AI Code of Practice, accompanying guidelines, and the template for training data disclosure under Article 53.

The signatories, drawn from music and broader creative industries, said they had engaged extensively throughout the consultation process. They now argue that the outcomes do not fully reflect the issues raised during those discussions.

According to the statement, the result does not provide the level of intellectual property protection that some had expected from the regulation.

The group has called on the European Commission to reconsider the implementation package and is encouraging the European Parliament and member states to review the process.

The original EU AI Act was widely acknowledged as a landmark regulation, with technology firms and creative industries closely watching its rollout across member countries.

Google confirmed that it will sign the General Purpose Code of Practice elsewhere. The company said the latest version supports Europe’s broader innovation goals more effectively than earlier drafts, but it also noted ongoing concerns.

These include the potential impact of specific requirements on competitiveness and handling trade secrets.

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Apple’s quiet race to replace Google Search with its own AI

Apple occasionally seems out of step with public sentiment, particularly when it comes to AI. A revealing example, highlighted by Bloomberg’s Mark Gurman in his Power On newsletter, involves Apple’s initial reluctance to build a ChatGPT-style chatbot for the iPhone.

Engineers within Apple’s AI division reportedly concluded that creating such a chatbot was unnecessary. Executives in both software and marketing agreed, suggesting there was only limited consumer interest in these tools.

However, chatbots have already demonstrated strong capabilities in answering user queries—something Siri still struggles with. While Siri can manage simple phone tasks, such as setting timers and alarms, it falls short in terms of the depth and accuracy of modern generative AI models.

Currently, Siri can redirect questions to ChatGPT, but only with user consent on a case-by-case basis. The responses, however, are brief and lack the detail found in the standalone ChatGPT app.

For richer answers, users are better off installing ChatGPT or Google’s Gemini directly. Siri’s limited integration does not extend to older models, such as the iPhone 15 or 15 Plus, which lack Apple Intelligence.

Users of these devices are strongly encouraged to install the AI apps manually for a more capable assistant experience. AI is also transforming search. Apple Services chief Eddy Cue has acknowledged that AI-driven search is the future.

Nonetheless, Apple remains financially bound to Google, which pays approximately $20 billion annually to be the default search engine on Apple devices. The US Department of Justice may soon intervene, potentially disrupting a partnership crucial to the growth of Apple’s Services division.

In a bid to modernise its search experience, Apple is developing its answer engine through an internal team known as AKI (Answers, Knowledge and Information).

The goal is to build a web-crawling system capable of delivering accurate responses to general knowledge queries, similar to what ChatGPT offers. Apple is considering deploying this answer engine not only within Siri but also across Spotlight and Safari.

A standalone app may also be developed to complement these efforts. Apple has also shown interest in external AI tools, such as Perplexity. Its iOS app, boasting a near-perfect rating from almost 230,000 reviews, promises clear, up-to-date answers, a long-time demand from users frustrated with Siri’s limitations.

The success of Apple’s in-house AI search project will be closely watched. Many iPhone users are hopeful that the next wave of AI tools will finally deliver the intelligence and responsiveness long expected from Apple’s digital assistant.

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Largest Bitcoin transactions in history spark quantum security talk

Eight long-dormant Bitcoin wallets from the early days of the network moved a combined 80,000 BTC in early July 2025. Each wallet sent roughly 10,000 BTC to new SegWit addresses, which offer enhanced security against future quantum computing threats.

These transfers mark the most significant single Bitcoin transactions ever recorded, attracting intense speculation across the crypto community.

Shortly after the transfer, around 28,600 BTC were sent to Galaxy Digital, with about 9,000 BTC sold, likely contributing to a 5% price drop from Bitcoin’s recent all-time high of $123,000.

Experts believe the security upgrade was a precaution against quantum computing risks, threatening Bitcoin’s cryptographic foundations in the coming decades. Developers are working on proposals to protect vulnerable wallets and strengthen network security.

Blockchain analysis shows all eight wallets belong to one entity, with some suspecting Roger Ver, aka ‘Bitcoin Jesus,’ because of his early role and recent legal troubles. Around that time, OP_RETURN messages appeared on the blockchain, possibly a spam campaign pressuring the wallet owner to prove control.

While no evidence of hacking has emerged, these events have heightened attention on dormant Bitcoin holdings and quantum security.

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AI breaches push data leak costs to new heights despite global decline

IBM’s 2025 Cost of a Data Breach Report revealed a sharp gap between rapid AI adoption and the oversight needed to secure it.

Although the global average data breach cost fell slightly to $4.44 million, security incidents involving AI systems remain more severe and disruptive.

Around 13% of organisations reported breaches involving AI models or applications, while 8% were unsure whether they had been compromised.

Alarmingly, nearly all AI-related breaches occurred without access controls, leading to data leaks in 60% of cases and operational disruption in almost one-third. Shadow AI (unsanctioned or unmanaged systems) played a central role, with one in five breaches traced back to it.

Organisations without AI governance policies or detection systems faced significantly higher costs, especially when personally identifiable information or intellectual property was exposed.

Attackers increasingly used AI tools such as deepfakes and phishing, with 16% of studied breaches involving AI-assisted threats.

Healthcare remained the costliest sector, with an average breach price of $7.42 million and the most extended recovery timeline of 279 days.

Despite the risks, fewer organisations plan to invest in post-breach security. Only 49% intend to strengthen defences, down from 63% last year.

Even fewer will prioritise AI-driven security tools. With many organisations also passing costs on to consumers, recovery now often includes long-term financial and reputational fallout, not just restoring systems.

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Nvidia refutes chip backdoor allegations as China launches probe

Nvidia has firmly denied claims that its AI chips contain backdoors allowing remote control or tracking, following questioning by China’s top cybersecurity agency.

The investigation, which focuses on the H20 chip explicitly designed for the Chinese market, comes as Beijing intensifies scrutiny over foreign tech used in sensitive systems.

The H20 was initially blocked from export in April under US restrictions, but is now expected to return to Chinese shelves.

China’s Cyberspace Administration (CAC) summoned Nvidia officials to explain whether the chip enables unauthorised access or surveillance. The agency cited demands from US lawmakers for mandatory tracking features in advanced AI hardware as grounds for its concern.

In a statement, Nvidia insisted it does not include remote access capabilities in its products, reaffirming its commitment to cybersecurity.

Meanwhile, China’s state-backed People’s Daily questioned the company’s trustworthiness, stating that ‘network security is as vital as national territory’ and warning against reliance on what it described as ‘sick chips’.

The situation highlights Nvidia’s delicate position as it attempts to maintain dominance in China’s AI chip market while complying with mounting US export rules.

Tensions have escalated since similar actions were taken against other US firms, including a 2022 ban on Micron’s chips and recent antitrust scrutiny over Nvidia’s Mellanox acquisition.

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Apple plans new AI answer engine

Apple is quietly developing its own AI-powered ‘answer engine‘ as part of a push to compete in the growing intelligent search field. The initiative is led by a new team called ‘Answers, Knowledge, and Information’.

The project aims to create a system that can respond to user questions by pulling from web-based content.

The tool may be launched as a standalone app or integrated into existing Apple platforms such as Siri and Safari. Although Apple has added ChatGPT support to Siri, plans for a more advanced, personalised AI assistant have faced repeated delays.

Apple is hiring engineers with search expertise, signalling a long-term plan to reshape how users access information across its products.

The company may also need to revise its longstanding search partnership with Google following the tech giant’s antitrust defeat, further pushing Apple towards building its solution.

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