Coins.ph will back the stablecoin with its own cash and cash equivalents held in Philippine bank accounts, ensuring a one-to-one peg with the Philippine Peso. The pilot program aims to assess the benefits of the PHPC and its impact on the existing financial ecosystem. Coins.ph plans to make the PHPC stablecoin available on its platform by early June. The company’s CEO, Wei Zhou, previously served as CFO at Binance. Coins.ph received approval to publicly test the stablecoin in April and hopes to obtain full approval if certain metrics are met, allowing the PHPC to operate outside of the pilot phase.
Coins.ph’s approval to conduct the pilot program demonstrates the BSP’s openness to exploring digital and cryptocurrencies. Operating within the Regulatory Sandbox Framework allows the central bank to observe the real-world applications while ensuring consumer protection and financial system stability.
The Philippine government recently blocked Binance from operating in the country, indicating regulatory concerns and a cautious approach towards digital currency exchanges. Additionally, the Philippines plans to issue a wholesale central bank digital currency (CBDC) within two years.
The Central bank of Rwanda call the public consultation on the future Central Bank Digital Currency (CBDC) pilot. The Central Bank call for the inputs of all stakeholders via online questionnaire available on their official website.
The launch of the Rwanda’s CBDC might get fast trajectory after the government commitment to improve financial system in the country. In particular in relation to e-commerce, online payments systems, and related features.
Global tendencies towards implementation of the Central Bank Digital Currency is highlighted in the latest BIS report on the CBDC implementation, released earlier this year. The BIS innovation center follow closely developments around CBDC implementation and the coordination work needed,
The EU Council has signed a new protocol aimed at facilitating cross-border data flows with Japan, a deal that was concluded in principle on the margins of the G7 Trade Ministerial in Osaka at the EU-Japan High-Level Economic Dialogue (HLED). This protocol, which is a key component of the broader EU-Japan Economic Partnership Agreement (EPA), marks a crucial development in the global digital economy, emphasizing the importance of streamlined digital trade and data management.
Approved by the EU Council, the protocol focuses on providing legal certainty for businesses by eliminating data localization requirements that often complicate digital operations. By allowing companies to handle data more efficiently without the need to establish multiple local data storage sites, the agreement aims to reduce costs and complexities, thereby boosting competitiveness and operational efficiency for businesses across sectors, including financial services, transport, machinery, and e-commerce.
A fundamental benefit of the protocol is the alignment with both regions’ existing digital privacy laws and regulatory frameworks. This guarantees that unwarranted limitations won’t obstruct data flows between the EU and Japan, promoting a safe and predictable legal environment for cross-border data processing. This alignment is particularly significant given the strict data protection standards upheld by both regions, which are integral to their digital trade strategies.
The EU has designated Shein, a fast-fashion company founded by China, as a very large online platform (VLOP) due to its extensive user base, surpassing 45 million users. The categorisation under the EU’s Digital Services Act (DSA) imposes stricter regulations on platforms regarding online content, mandating them to take more robust measures against illegal and harmful content as well as counterfeit products.
Shein, responding to the designation, expressed its commitment to complying with the rules outlined by the EU. Leonard Lin, Shein’s global head of public affairs, emphasised the company’s dedication to ensuring consumers in the EU can confidently shop online. Shein, known for its rapid expansion and popularity, launched its marketplace in the EU in August last year and is considering a US initial public offering.
Italy’s antitrust authority has fined two Amazon subsidiaries 10 million euros for alleged unfair commercial practices, a decision that Amazon plans to challenge through an appeal. The regulator accused Amazon of limiting consumers’ freedom of choice by automatically pre-setting a ‘Subscribe and Save’ option on its website for a wide range of products. This practice encouraged consumers to opt for recurring deliveries rather than one-off purchases, potentially restricting their ability to choose freely.
According to the authority, pre-ticking recurring purchases could lead consumers to buy products periodically, even without a genuine need, thus curtailing their freedom to choose. Amazon responded by contesting the decision and stating its intention to appeal. The company defended its ‘Subscribe and Save’ program, highlighting its benefits to customers regarding cost savings and convenience for routine purchases.
Amazon emphasised that the ‘Subscribe and Save’ option, which allows customers to schedule regular deliveries of essential items with a discount, has resulted in significant savings exceeding 40 million euros since its introduction in Italy. Despite the fine and regulatory scrutiny, Amazon maintains that its program continues to provide value to customers by simplifying their shopping experience and offering discounts on recurring purchases of everyday products.
Malaysia has kicked off a new initiative to establish itself as a hub for top-tier entrepreneurs and skilled professionals. This involves rolling out a fresh series of visas, including the “unicorn golden pass“, which aims to draw in world-renowned unicorns, stimulate high-level job growth, and nurture tech-savvy entrepreneurs and leaders. Two other visas namely the ‘venture capital golden pass’ and the ‘innovation pass’, each with unique incentives were also released. The ultimate goal is to support start-ups and enhance Malaysia’s status as a global tech hub.
In his keynote address at the KL20 Summit 2024, organized by the Malaysian government and spearheaded by the Ministry of Economy, Economy Minister Rafizi Raml elaborated on how Malaysia offers incentives, including waived employment pass fees for top management, reduced rent, preferential corporate tax rates, relocation assistance, and start-up registration support.
Prime Minister Anwar Ibrahim also initiated the KL20 Action Plan, a strategic blueprint to accelerate Malaysia’s tech start-up ecosystem. It aims to unite key players such as founders, venture capitalists, and incubators. The plan is committed to nurturing a dynamic start-up culture. It aims to create 100,000 high-skilled jobs and foster 3,000 new active start-ups, which aligns with Malaysia’s vision of creating a seamless business environment with ample funding and talent access.
Japan’s antitrust watchdog has issued a directive to Google, stating that the US tech giant must address its advertising search restrictions that affect Yahoo in Japan. According to the Japan Fair Trade Commission, Google’s practices were found to impede fair competition in the advertising market, particularly in relation to Yahoo Japan Corp., which merged with Line, a Japanese social media platform.
The issue stems from Google’s keyword-targeted search advertising services, which Yahoo Japan utilised after a collaboration initiated in 2010. The Fair Trade Commission claims that Google imposed restrictions in its advertising agreement with Yahoo Japan that hindered competition in targeted search ads for over seven years. Google responded by dropping these restrictions following an investigation by the FTC into potential violations of the Anti-Monopoly Law.
In response to the commission’s findings, Google has pledged full cooperation and emphasised that the commission did not find outright violations of anti-monopoly laws. The company committed to implementing the commission’s directives to enhance search functions for Japanese users and advertisers. Meanwhile, Line Yahoo declined to comment on the matter.
Why does it matter?
Google will remain under scrutiny for the next three years to ensure compliance with necessary changes. However, the commission did not impose fines or other penalties on the tech giant, which remains popular in Japan. This action by the commission comes shortly after another legal setback for Google in Japan, where Japanese doctors filed a civil lawsuit against the company for allegedly allowing groundless derogatory and false comments on its platform. In response, Google stated its continuous efforts to combat misleading or false information through human oversight and technological solutions.
Thailand has announced plans to block “unauthorized” cryptocurrency platforms in order to enhance law enforcement efforts to combat online crime. The decision was made following a meeting of the Technology Crime Prevention and Suppression Committee, which instructed the country’s Securities and Exchange Commission (SEC) to submit information about unauthorised digital asset service providers to the Ministry of Digital Economy and Society. The goal is to block access to these platforms.
To facilitate a smooth transition, users will be provide with sufficient time to manage their accounts before losing access to the services. In an announcement, the SEC urged users of affected platforms to promptly withdraw their assets. The Thai SEC also cited previous actions taken by countries such as India and the Philippines, which have blocked unauthorized cryptocurrency platforms.
Thai regulators have been striving to strike a balance between supporting the cryptocurrency ecosystem and preventing fraud. While institutional investors and high-net-worth individuals have been allowed to invest in cryptocurrency exchange-traded funds (ETFs), and retail investors have been able to invest without limitations in digital tokens backed by real estate or infrastructure, custodians are required to have contingency plans in place in case of unforeseen issues.
The move to block unauthorized crypto platforms in Thailand reflects the global trend towards regulation in the cryptocurrency industry. The aim is to enhance the efficiency of law enforcement in addressing online criminal activities associated with cryptocurrencies, while also ensuring a secure and trustworthy environment within the crypto space.
Apple is rolling out a significant change in its approach to distributing iOS apps in the EU. Starting Tuesday, developers will be able to offer apps for direct download from their websites. This move breaks from Apple’s traditional walled garden model and responds to new EU regulations to foster competition and consumer protection in digital markets.
Under these changes, developers meeting Apple’s criteria, including notarization requirements, can distribute iPhone apps directly to the EU users. However, this comes with new terms, including a ‘core technology fee’ of €0.50 for each first annual install over 1 million, regardless of distribution location.
The company has also made other adjustments in compliance with the Digital Markets Act (DMA), such as allowing marketplace apps where developers can run their own app stores on iOS and offering greater flexibility in in-app payments. However, Apple maintains its stance on security risks associated with sideloading apps, emphasising safety measures in the new distribution process.
While this shift opens up new avenues for developers to reach users in the EU, its adoption remains to be determined. Apple acknowledges some interest from developers but emphasises that it’s a new capability, and the extent of its adoption is yet to be seen. This move adds to the evolving landscape of app distribution options in the EU alongside the existing App Store distribution and marketplace app submissions.
Google’s parent company, Alphabet, is reportedly considering acquiring the marketing software company HubSpot. Despite experts’ views that it would not stifle competition in the market, the deal could face consequential opposition from regulators, even though Google is still preliminarily considering the potential deal and assessing the associated antitrust risks.
Several industry analysts and antitrust experts believe that an acquisition of HubSpot by Google would not negatively impact competition, considering major players like Salesforce, Adobe, Microsoft, and Oracle in the Customer Relationship Management (CRM) software sector. Google does not currently compete in CRM, and the acquisition could strengthen HubSpot’s position with Google’s cloud-computing capabilities, leading to improved offerings and pricing for customers.
However, experts also anticipate that a Google-HubSpot deal would likely face challenges from US and EU antitrust regulators due to their increasing concerns about tech giants expanding through acquisitions. Former general counsel of the US Senate antitrust subcommittee, Seth Bloom, noted that such a deal would likely encounter a harsh reception from regulators and could lead to a lengthy court battle.
The reported consideration of a major acquisition like HubSpot reflects Google’s desire to strategically deploy its substantial cash reserves, estimated at $110 billion, to generate returns. Google has historically avoided large acquisitions since it purchased Motorola Mobility over a decade ago, focusing instead on smaller deals in advertising. Despite its investments in AI, Google’s shareholder returns have trailed behind competitors like Microsoft and Meta Platforms in recent months, prompting interest in potential transformative acquisitions like HubSpot.
