Economic Archives | Digital Watch Observatory

World Internet Conference Asia-Pacific Summit opens in Hong Kong

The 2026 World Internet Conference Asia-Pacific Summit has opened in Hong Kong, hosted by the World Internet Conference, organised by the Hong Kong Special Administrative Region Government, and co-organised by the Innovation, Technology and Industry Bureau.

The Hong Kong government says the two-day summit is expected to bring together around 1,000 participants from more than 50 countries and regions, including government and business leaders, representatives of international organisations, and experts and scholars.

The programme includes remarks by Hong Kong Chief Executive John Lee and World Internet Conference Chairman and Director of the Cyberspace Administration of China Zhuang Rongwen, alongside other invited speakers from government, industry, and international organisations.

A ministerial meeting was convened during the summit, with officials and representatives of international organisations discussing topics including how AI can support high-quality economic growth. The programme also includes a government-enterprise dialogue and a main forum focused on the digital economy, innovation, and technology development.

Six sub-forums are scheduled as part of the summit, covering innovation and application of AI agents, digital finance, AI security and governance, AI for a better life, digital and intelligent health, and digital transformation and dissemination of classical texts.

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Australian authorities warn of data exploitation through social media platforms

Social media and messaging services pose growing security and privacy risks, with personal data used to build profiles for fraud, espionage, or social engineering. Even routine posts may contribute to broader data collection and unintended exposure.

Platforms typically collect extensive user and device data under evolving privacy policies, sometimes storing it across jurisdictions with varying legal protections. Such conditions increase the risks to identity theft, reputational harm, and the misuse of aggregated personal information.

The Australian Government advises organisations to restrict access to official accounts, train staff, and enforce clear policies on what can be shared. It also highlights the importance of breach response procedures to maintain operational security.

For individuals, the Government guidance recommends limiting exposure of personal data, using privacy settings, avoiding unknown contacts, and applying strong authentication.

Regular updates, careful app permissions, and device security measures are also encouraged to reduce cyber risks.

Strengthening awareness and applying consistent security practices reduces vulnerability and supports more resilient organisational systems in an increasingly interconnected digital environment.

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Corporate AI governance gaps highlighted in UNESCO report

UNESCO and the Thomson Reuters Foundation have published ‘Responsible AI in practice: 2025 global insights from the AI Company Data Initiative‘, presenting findings from what the report describes as the largest global dataset of corporate responsible AI disclosures.

The report analyses 2,972 companies across 11 sectors and multiple regions using publicly available disclosures and company survey responses collected through the AI Company Data Initiative.

The report says AI is being embedded across companies’ products, services, and internal operations faster than governance and disclosure are developing. It states that 43.7% of companies publicly communicate having an AI strategy or guidelines, but only 13% publicly claim adherence to a formal AI governance framework.

Among those that do cite a framework, 53% refer to the EU AI Act, while the report says 43.6% cite ‘other’ frameworks, which it presents as weakening comparability across the wider AI governance ecosystem.

The publication also says many companies describe AI governance in conceptual terms while providing less evidence on operational controls, accountability pathways, monitoring, and remediation. It states that 40% report board- or committee-level oversight on AI, and 12.4% report having a policy to ensure a human oversees AI systems.

At the same time, the publication says 72% of companies do not report conducting any AI-related impact assessment. Of those that do, 11% report environmental impact assessments and 7% report human rights impact assessments. The key statistics on page 10 visually present these findings.

Regarding labour impacts, the report says companies do not provide adequate protection for workers as AI reshapes jobs. It states that while 31% of companies claim to have AI training programmes, only 12% offered structured training with comprehensive coverage. It also argues that effective worker protection requires stronger evidence of reskilling, retraining, redeployment, transition support, and access to remedy where AI affects workers’ rights.

Why does it matter?

The report further states that ethical issues, including human rights and environmental impacts, are being sidelined in AI governance and risk management, while transparency regarding training data, third-party systems, and user rights remains uneven. It presents the AI Company Data Initiative as a tool to help companies assess their governance practices against UNESCO’s Recommendation on the Ethics of AI and to give investors more comparable information on how AI is governed in practice.

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EU approves Italian State aid to support graphene-based photonic chip development

The European Commission has approved a €211 million Italian State aid measure to support the development of photonic chips based on graphene technology.

A funding will be provided to the Italian SME CamGraPhIC, with project activities taking place in Pisa and Bergamo.

Such an initiative focuses on optical transceivers that transmit data using light rather than electrons. The use of graphene instead of silicon is expected to enhance performance and energy efficiency across sectors such as telecommunications, automotive, aerospace and defence.

The Commission assessed the measure under the EU State aid rules and concluded that the funding is necessary, proportionate and aligned with research and innovation objectives. It also found that the project would not proceed without public support, demonstrating an incentive effect.

A decision that reflects broader EU efforts to strengthen semiconductor capabilities and support advanced digital technologies through targeted public investment and regulatory oversight.

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First Dutch credit institution enters crypto market under MiCA framework

ClearBank Europe has become the first Dutch credit institution to secure Crypto Asset Service Provider status under the EU’s Markets in Crypto-Assets Regulation. The Dutch Authority for the Financial Markets confirmed the approvalafter the bank completed its MiCAR notification on 9 April 2026.

The new status allows ClearBank to deliver regulated digital asset services across the European Union. The institution will use Circle’s Mint platform to provide clients with access to EURC, a euro-referenced stablecoin, and USDC, a US dollar-referenced stablecoin.

Under MiCA rules, the EU credit institutions can access a notification pathway distinct from the standard licensing regime for crypto service providers.

ClearBank becomes the first Dutch bank to complete the process, enabling seamless movement between fiat and digital assets within a regulated banking environment.

ClearBank operates under European Central Bank authorisation and is supervised by De Nederlandsche Bank. Its digital asset strategy, developed since gaining its banking licence in the Netherlands, is now advancing to its first large-scale implementation through MiCA compliance.

The development signals how the EU regulation is evolving to integrate traditional banking institutions into the crypto ecosystem, creating a more unified and compliant framework for digital asset adoption across financial markets.

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FBI reports billions lost to crypto and AI scams

The Federal Bureau of Investigation reports that cyber-enabled crimes cost Americans nearly $21 billion in 2025, according to its latest Internet Crime Report. The Internet Crime Complaint Center recorded more than 1 million complaints, marking a rise from the previous year.

Investment fraud, phishing, extortion, and tech support scams remained the most common threats, with older adults reporting disproportionately high losses. Individuals over 60 accounted for approximately $7.7 billion in losses, reflecting a sharp year-on-year increase.

Cryptocurrency-related fraud was the most financially damaging category, with losses exceeding $11 billion across more than 180,000 complaints. The report also highlighted emerging risks linked to AI, including deepfake identities, voice cloning, and fabricated media used to manipulate victims.

The FBI has expanded initiatives such as Operation Level Up to identify ongoing scams and reduce losses, while emphasising early reporting and awareness measures. Officials say scammers increasingly use psychological pressure and realistic digital impersonation to deceive victims.

Rising losses highlight how rapidly evolving digital fraud techniques are outpacing public awareness, with crypto and AI tools making scams more scalable and convincing.

Strengthening detection, reporting, and education will be critical to reducing financial harm and improving resilience against increasingly sophisticated online crime networks.

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Microsoft outlines approach to scaling AI across organisational systems

A shift from early AI adoption towards what it terms ‘frontier transformation’ has been described by Microsoft, where AI is integrated into core organisational processes.

Such an approach reflects how AI is increasingly embedded within everyday workflows rather than used in isolated pilots.

According to Microsoft, scaling AI requires moving beyond experimentation and establishing structured operating models. It includes addressing practical challenges such as data integration, system reliability, and alignment with organisational objectives.

A framework that also highlights the importance of governance and execution, with AI systems expected to operate under defined standards similar to other critical infrastructure. Something that involves coordination across platforms, internal processes, and external partners.

Why does it matter?

Frontier transformation illustrates a broader transition in how organisations approach AI deployment, focusing on long-term integration, operational consistency, and scalable implementation across different sectors.

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China pushes blockchain adoption in banking sector

The State Administration of Taxation and the National Financial Regulatory Administration of China have called on banks to integrate blockchain and privacy computing into lending systems, aiming to improve transparency and expand access to financing for small businesses.

The initiative focuses on upgrading the ‘bank-tax interaction’ model by strengthening data sharing between financial institutions, tax authorities, and enterprises.

Authorities emphasise the need to standardise data exchange and reduce information asymmetry, which has long limited credit access for smaller firms. Improved credit models and faster approvals aim to support compliant businesses while boosting financial efficiency.

The directive aligns with China’s broader strategy to build a national data infrastructure supported by blockchain technology. A roadmap led by the National Development and Reform Commission targets nationwide implementation by 2029, with projected annual investment reaching 400 billion yuan.

Despite strict restrictions on cryptocurrency trading, China continues to promote blockchain as a core technology for economic development. Earlier initiatives, including blockchain invoicing, show a steady push to integrate the technology into real-world finance and administration.

Strengthening data sharing and transparency in lending could improve access to finance for small businesses, which remain a key driver of economic growth.

Wider blockchain integration may also support more efficient financial systems, reinforce trust in institutional processes, and advance China’s long-term digital infrastructure strategy.

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Experts warn of potential quantum disruption to blockchain security

A survey by the Global Risk Institute has highlighted growing concern that quantum computing could undermine the cryptographic foundations of cryptocurrencies within the next decade.

Experts estimate a 28% to 49% probability that quantum machines capable of breaking current encryption standards could emerge within 10 years, with the probability rising further over a 15-year horizon.

Cryptocurrencies such as Bitcoin rely on public-key cryptography to secure transactions and verify ownership. Advanced quantum algorithms could reverse-engineer private keys from public data, exposing wallets and weakening blockchain security.

The risk is seen as particularly relevant for long-term stored assets and static addresses. Industry researchers and technology firms are already exploring post-quantum cryptography to mitigate potential disruption.

Efforts led by standards bodies such as the National Institute of Standards and Technology focus on developing encryption methods resistant to both classical and quantum attacks, although full migration across decentralised systems remains complex.

The findings place quantum readiness alongside broader digital security priorities, as financial systems, communications networks, and public infrastructure share similar cryptographic dependencies.

The evolving timeline is prompting early-stage preparation across the cryptocurrency ecosystem, where system upgrades must balance security, decentralisation, and continuity.

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Employee interest grows in crypto payroll options

A survey conducted by Oobit among 1,004 full-time employees indicates growing interest in receiving salaries in cryptocurrency, reflecting a gradual shift in how workers view digital assets as part of everyday income.

Around 43% of respondents said they would be interested in receiving at least part of their pay in crypto, while 32% stated they would likely opt in if their employer introduced such an option. Interest was notably stronger among employees with prior crypto ownership or trading experience.

Adoption is already visible, with one in five workers having been paid in crypto, mainly through freelance or side work. Despite this, employer-led crypto payroll remains limited, with only 7% of employees saying their company currently offers it.

Concerns remain a key factor slowing wider uptake, particularly price volatility, cited by half of respondents. Barriers include preference for traditional currency, limited usability, and trust concerns, while clearer regulation and easier conversion tools could improve confidence.

Crypto compensation reflects a broader shift in how labour and value are being redefined within increasingly digital economies. Its gradual integration into payroll systems signals a move towards more flexible, borderless financial structures in which traditional and digital assets coexist.

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