Economic Archives | Digital Watch Observatory

EU-backed financing boosts Bulgaria’s high-tech sector and innovation growth

The European Investment Fund (EIF) will manage a €210 million financing initiative to support high-tech businesses in Bulgaria, focusing on sectors such as AI, microelectronics and advanced technologies.

The programme operates within the JEREMIE Bulgaria framework, which aims to improve access to capital for small and medium-sized enterprises.

An initiative that reflects a broader EU strategy to strengthen innovation capacity and support sustainable economic growth through targeted investment mechanisms.

The EIF, a subsidiary of the EIB Group, will prioritise equity financing and scale-up support to address structural gaps that often limit the expansion of high-growth companies within national markets.

A programme that also aligns with wider efforts to retain technological talent and reduce reliance on external capital by reinforcing domestic innovation ecosystems.

By supporting dual-use technologies and strategic sectors, the measure contributes to both economic competitiveness and technological resilience.

Through its revolving funding model, reinvested capital is expected to sustain long-term financing capacity, reinforcing the position of Bulgaria within regional venture capital networks and supporting the development of a more mature innovation economy.

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ECB warns on liquidity pressures in digital fund structures

An analysis published by the European Central Bank highlights the rapid expansion of tokenised money market funds, while warning that familiar financial risks remain embedded in their structure.

Market size remains relatively small at around €7 billion, yet growth has accelerated, largely driven by activity in the digital asset ecosystem.

Hybrid design continues to define the sector. Fund shares are issued as blockchain-based tokens, but underlying assets and key operational processes often remain off-chain.

Such arrangements limit the efficiency gains associated with tokenisation, including continuous trading and real-time settlement, while maintaining reliance on traditional intermediaries and legal frameworks.

Potential advantages include faster settlement, improved transparency, and expanded use cases such as collateral in derivatives and repo transactions. Tokenised funds may also enhance liquidity access through peer-to-peer transfers and offer more precise, real-time yield calculations.

Realisation of these benefits, however, depends on deeper integration and more advanced infrastructure.

Financial stability risks remain a central concern in the ECB’s assessment. Liquidity mismatches between instantly tradable tokens and slower underlying assets may heighten the risk of investor runs during periods of stress.

Additional vulnerabilities arise from operational dependencies, smart contract risks, and growing interconnections between crypto markets and traditional finance. The overall impact will depend on regulatory responses and onhow effectively emerging risks are managed as the market evolves.

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Microsoft launches MPowerHer programme to upskill women in AI and tech in Singapore

Microsoft has launched the MPowerHer initiative in Singapore to support women in building AI and digital skills through training, mentorship, and career pathways. The programme is delivered with partners including SG Women in Tech, Mums@Work, and Code; Without Barriers.

The initiative was officially launched by Minister of State for the Ministry of Digital Development and Information, Rahayu Mahzam, at Microsoft Public Sector Solutions Day. It aims to support women across different life and career stages, including those returning to work after a career break.

MPowerHer combines foundational AI training with practical, team-based projects and career support. It also provides access to mentorship networks and community programmes designed to help participants move into employment or entrepreneurship.

The programme includes training in AI fundamentals, Microsoft Copilot, AI agents, and low-code and no-code tools. It is open to members of national communities such as SG Women in Tech, Mums@Work, and Code; Without Barriers, as well as other women across Singapore.

Microsoft Singapore Managing Director Wee Luen Chia said the initiative focuses on ensuring women are included in the AI-driven workforce. He added that it supports inclusive skills development and prepares participants for opportunities in the digital economy.

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Crypto gains official recognition in Argentina investor framework

Argentina’s securities regulator has officially recognised cryptocurrencies as part of an individual’s net worth when determining qualified investor status. The change is set out in CNV Resolution 1125/2026, which allows digital assets to be included in the financial threshold of roughly $479,000.

The measure defines virtual assets as transferable digital value, covering cryptocurrencies, tokenised assets, and stablecoins. Authorities stated that incorporating these assets reflects a broader view of financial capacity and aims to expand participation in investment markets.

A 2022 central bank ban still prevents banks from offering crypto services, though some institutions are testing blockchain-based settlement systems internally. The restriction is expected to ease as the government signals a more open stance towards digital assets.

The policy shift positions Argentina as gradually integrating crypto into its formal financial framework, with the potential to widen investor access and align regulation with evolving digital markets.

Financial systems are gradually adapting to digital assets, even in jurisdictions with strict restrictions, signalling a slow convergence between traditional banking infrastructure and blockchain-based settlement technologies.

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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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