Digital cooperation

Federal Reserve embraces crypto innovation in payments system

The Federal Reserve has signalled a shift towards decentralised finance, with Governor Waller saying the central bank now welcomes crypto innovators into mainstream payments.

Speaking at the Payments Innovation Conference on 21 October, Waller said the Fed intends to play an active role in the ongoing technology-driven transformation of the financial system.

Waller highlighted how stablecoins, tokenised assets, and AI are reshaping the payments landscape. He said private firms drive innovation but added that public institutions like the Fed must adapt to support evolving financial systems.

The governor said the central bank is exploring how tokenisation, smart contracts, and AI could enhance its own systems and foster closer dialogue with industry innovators.

In a significant policy proposal, Waller revealed that the Fed is studying a new type of ‘payment account’ for legally eligible institutions. The concept would provide streamlined access to Federal Reserve payment rails for fintech and crypto firms without requiring a full master account.

Such accounts would operate under tighter controls, including balance caps, no interest payments, and no overdraft privileges, allowing faster review times while maintaining system safety.

Waller said the payments revolution is underway and urged collaboration between traditional finance and emerging digital sectors. He called the event a turning point for Fed–innovator relations, noting that crypto and distributed ledgers are now part of modern payments.

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EU pushes harder on basic digital skills for growth

Nearly half of EU adults lack basic digital skills, yet most jobs demand them. Eurostat reports only 56% have at least basic proficiency. EU Code Week spotlights the urgency for digital literacy and inclusion.

The Digital Education Action Plan aims to modernise curricula, improve infrastructure, and train teachers. EU policymakers target 80% of adults with basic skills by 2030. Midway progress suggests stronger national action is still required.

Progress remains uneven across regions, with rural connectivity still lagging in places. Belgium began a school smartphone ban across Flanders from 1 September to curb distractions. Educators now balance classroom technology with attention and safety.

Brussels proposed a Union of Skills strategy to align education and competitiveness. The EU also earmarked fresh funding for AI, cybersecurity, and digital skills. Families and schools are urged to develop unplugged problem-solving alongside classroom learning.

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UK data stays in the UK as OpenAI rolls out residency

OpenAI will offer UK data residency for API Platform, ChatGPT Enterprise, and ChatGPT Edu from October 24. The option, announced by Deputy PM David Lammy, is tied to a Ministry of Justice partnership. The government says it boosts privacy, security, and resilience for public services and business.

Lammy will unveil the ‘sovereign capability’ at OpenAI Frontiers, citing early MoJ efficiency gains. Over 1,000 probation officers will use Justice Transcribe to record and auto-transcribe offender meetings. Hours of admin shift to AI so staff can focus on supervision and public protection.

OpenAI CEO Sam Altman says UK usage has quadrupled in the past year. The company pitches AI as a way to save time and lift productivity across sectors. MoJ pilots have sparked interest from other departments, with broader adoption expected.

Data residency is a key blocker for regulated sectors, and this move aims to address that gap. Keeping data within the UK can simplify compliance and reduce perceived risk. It also underpins continuity plans by localising sensitive workloads.

ChatGPT Atlas, an AI-first web browser, was also announced this week. Its arrival could nudge users away from keyword searches toward conversational answers. OpenAI faces rivals Anthropic, Perplexity, and big tech incumbents in that shift.

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Netflix goes ‘all in’ on generative AI as entertainment industry remains divided

Netflix has declared itself ‘all in’ on generative artificial intelligence (GenAI), signalling a significant commitment to embedding AI across its business, from production and VFX to search, advertising and user-experience, according to a recent investor letter and earnings call.

Co-CEO Ted Sarandos emphasised that while AI will be widely used, it is not a replacement for the creative talent behind Netflix’s original shows. ‘It takes a great artist to make something great,’ he remarked. ‘AI can give creatives better tools … but it doesn’t automatically make you a great storyteller if you’re not.’

Netflix has already applied GenAI in production. For example, in The Eternaut, an Argentine series in which a building-collapse scene was generated using AI tools, reportedly ten times faster than with conventional VFX workflows. The company says it plans to extend GenAI use to search experiences (natural language queries), advertising formats, localisation of titles, and creative pre-visualisation workflows.

However, the entertainment industry remains divided over generative AI’s role. While Netflix embraces the tools, many creators and unions continue to raise concerns about job displacement, copyright and the erosion of human-centred storytelling. Netflix is walking a line of deploying AI at scale while assuring audiences and creators that human artistry remains central.

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EU sets new rules for cloud sovereignty framework

The European Commission has launched its Cloud Sovereignty Framework to assess the independence of cloud services. The initiative defines clear criteria and scoring methods for evaluating how providers meet EU sovereignty standards.

Under the framework, the Sovereign European Assurance Level, or SEAL, will rank services by compliance. Assessments cover strategic, legal, operational, and technological aspects, aiming to strengthen data security and reduce reliance on foreign systems.

Officials say the framework will guide both public authorities and private companies in choosing secure cloud options. It also supports the EU’s broader goal of achieving technological autonomy and protecting sensitive information.

The Commission’s move follows growing concern over extra-EU data transfers and third-country surveillance. Industry observers view it as a significant step toward Europe’s ambition for trusted, sovereign digital infrastructure.

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Cloudflare calls for UK action on Google’s AI crawlers

Cloudflare’s chief executive Matthew Prince has urged the UK regulator to curb Google’s AI practices. He met with the Competition and Markets Authority (CMA) in London to argue that Google’s bundled crawlers give it excessive power.

Prince said Google uses the same web crawler to gather data for both search and AI products. Blocking the crawler, he added, can also disrupt advertising systems, leaving websites financially exposed.

Cloudflare, which supplies network services to most major AI companies, has proposed separating Google’s AI and search crawlers. Prince believes the change would create fairer access to online content for smaller AI developers.

He also provided data to the UK CMA showing why rivals cannot easily replicate Google’s infrastructure. Media groups have echoed his concerns, warning that Google’s dominance risks deepening inequalities across the AI ecosystem.

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EU states split over children’s social media rules

European leaders remain divided over how to restrict children’s use of social media platforms. While most governments agree stronger protections are needed, there is no consensus on enforcement or age limits.

Twenty-five EU countries, joined by Norway and Iceland, recently signed a declaration supporting tougher child protection rules online. The plan calls for a digital age of majority, potentially restricting under-15s or under-16s from joining social platforms.

France and Denmark back full bans for children below 15, while others, prefer verified parental consent. Some nations argue parents should retain primary responsibility, with the state setting only basic safeguards.

Brussels faces pressure to propose EU-wide legislation, but several capitals insist decisions should stay national. Estonia and Belgium declined to sign the declaration, warning that new bans risk overreach and calling instead for digital education.

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USB inventor and Phison CEO warns of an AI storage crunch

Datuk Pua Khein-Seng, inventor of the single-chip USB flash drive and CEO of Phison, warns that AI machines will generate 1,000 times more data than humans. He says the real bottleneck isn’t GPUs but memory, foreshadowing a global storage crunch as AI scales.

Speaking at GITEX Global, Pua outlined Phison’s focus on NAND controllers and systems that can expand effective memory. Adaptive tiering across DRAM and flash, he argues, will ease constraints and cut costs, making AI deployments more attainable beyond elite data centres.

Flash becomes the expansion valve: DRAM stays scarce and expensive, while high-end GPUs are over-credited for AI cost overruns. By intelligently offloading and caching to NAND, cheaper accelerators can still drive useful workloads, widening access to AI capacity.

Cloud centralisation intensifies the risk. With the US and China dominating the AI cloud market, many countries lack the capital and talent to build sovereign stacks. Pua calls for ‘AI blue-collar’ skills to localise open source and tailor systems to real-world applications.

Storage leadership is consolidating in the US, Japan, Korea, and China, with Taiwan rising as a fifth pillar. Hardware strength alone won’t suffice, Pua says; Taiwan must close the AI software gap to capture more value in the data era.

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Kenya leads the way in AI skilling across Africa

Kenya’s AI Skilling Initiative (AINSI) is offering valuable insights for African countries aiming to build digital capabilities. With AI projected to create 230 million digital jobs across Africa by 2030, coordinated investment in skills development is vital to unlock this potential.

Despite growing ambition, fragmented efforts and uneven progress continue to limit impact.

Government leadership plays a central role in building national AI capacity. Kenya’s Regional Centre of Competence for Digital and AI Skilling has trained thousands of public servants through structured bootcamps and online programmes.

Standardising credentials and aligning training with industry needs are crucial to ensure skilling efforts translate into meaningful employment.

Industry and the informal economy are key to scaling transformation. Partnerships with KEPSA and MESH are training entrepreneurs and SMEs in AI and cybersecurity while tackling affordability, connectivity, and data access challenges.

Education initiatives, from K–12 to universities and technical institutions, are embedding AI training into curricula to prepare future generations.

Civil society collaboration further broadens access, with community-based programmes reaching gig workers and underserved groups. Kenya’s approach shows how inclusive, cross-sector frameworks can scale digital skills and support Africa’s AI-driven growth.

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Maserati’s new campaign pits human emotion against machine precision

Luxury automobile manufacturer Maserati has launched a new campaign titled ‘Do AIs Dream of Driving?’, created in collaboration with creative agency DUDE and production studio Studio FM.

The 60-second film imagines an advanced AI named ‘Leonardo’ that knows every specification and blueprint of Maserati’s own Nettuno engine, yet, despite this knowledge, cannot experience the emotion, thrill and sensory feel of driving.

The film opens in a futuristic environment where Leonardo narrates the engine’s performance, its 630 hp output, its combustion architecture and Italian engineering heritage. Yet, alongside sleek imagery of Maseratis in motion, Leonardo glitches subtly, illustrating the distinction between technical perfection and human experience.

From a creative standpoint, the campaign intentionally integrates AI in the production process, not as a cost-cutting measure, but as a storytelling device. The protagonist was cast in the traditional human way; his digital twin was generated via AI.

The setting and styling drew from AI-assisted visual research but retained human oversight. Studio FM asserts all stages from casting to post-production adhered to an ethical protocol to protect rights and ensure transparency.

The campaign will run globally across Maserati’s social media channels (Instagram, Facebook, YouTube) and highlights a new phase in how automotive brands use generative AI, not just to showcase specs, but to evoke emotion and identity.

Creative Director Chiara Monticelli (DUDE Milan) noted that the project represented ‘an important step forward … where AI supports and enhances human creativity without replacing it.’

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