Economic Archives | Digital Watch Observatory

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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Latvia gains EIB expertise to scale technology companies

The European Investment Bank (EIB) will guide Latvia on promoting technological innovation and scaling high-growth companies.

Cooperation with the Ministry of Economics and the Investment and Development Agency of Latvia (LIAA) aims to strengthen national policies, financing tools, and support mechanisms.

EIB experts will assess existing support for businesses, research, and emerging technologies, while exploring regional alignment with Estonia and Lithuania to foster Baltic-wide initiatives.

The advisory programme includes capacity-building for public authorities and universities, ensuring practical, market-aligned solutions. Riga Technical University’s development plan will be evaluated to link investments with national innovation objectives.

Recommendations will provide a strategic roadmap to amplify the innovation ecosystem of Latvia and attract international investment.

The initiative falls under the InvestEU programme, using data-driven insights to bridge early-stage financing gaps, support scale-ups, and enhance high-growth sectors.

Latvia’s goal is to expand its tech ecosystem, increase competitiveness, and integrate with Europe’s dynamic innovation networks.

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Corning and Meta start construction on North Carolina AI cable facility

Corning Incorporated and Meta Platforms have begun construction on a major expansion of Corning’s optical cable manufacturing facility in Hickory, North Carolina. The project will support advanced AI data centres using US-developed technology.

The initiative is part of a multiyear, up to $6 billion agreement between the two companies to accelerate the deployment of high-performance data centres. Under the agreement, Corning will supply Meta with new optical fibre, cable, and connectivity solutions.

Meta will act as the anchor customer for the Hickory expansion, which will produce optical cable critical for AI infrastructure. The expansion is expected to strengthen domestic manufacturing and create additional skilled jobs in North Carolina.

Corning currently employs more than 5,000 people in the state and plans to increase its workforce by 15 to 20 percent. Executives emphasised the partnership’s role in advancing US innovation and supporting the next generation of AI infrastructure.

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Eurasian Development Bank Fund expands digital cooperation with Uzbekistan

A delegation from the Fund for Digital Initiatives (FDI) of the Eurasian Development Bank (EDB) visited Uzbekistan to enhance cooperation in digital transformation and AI technologies. Tigran Sargsyan, Vice Chairman of the EDB Management Board, met with Sherzod Shermatov, Minister of Digital Technologies and National CIO.

The meeting highlighted ongoing initiatives, including solutions in water management, labour markets, jewellery trade, and air quality monitoring. Uzbekistan’s Ministry representatives expressed interest in evaluating FDI-supported projects and presenting their own digital solutions.

Both parties agreed to develop a joint roadmap for implementing the projects and strengthening long-term collaboration. The FDI delegation also toured IT Park Uzbekistan to understand its role in innovation and startup development.

The visit marked a step toward accelerating Uzbekistan’s digital transformation and expanding economic and technological ties with the EDB Fund. Planned projects aim to integrate AI and digital tools to support sustainable growth and innovation.

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IMF warns of rising risks in tokenised financial systems

The International Monetary Fund has warned that central banks could struggle to keep pace as tokenisation reshapes financial systems. Converting traditional assets into blockchain-based tokens is seen as a structural shift, improving efficiency while introducing new systemic risks.

According to the IMF, faster settlement and automation may reduce risks but also shorten reaction times during market stress. Instant transactions could trigger rapid margin calls and capital movements, limiting the ability of regulators to intervene effectively in emerging crises.

Tobias Adrian, Financial Counsellor of the International Monetary Fund and Head of their Monetary and Capital Markets Department, emphasised that tokenisation is transforming how financial products are issued, traded, and managed.

Concerns include unpredictable capital flows, faster currency shifts, and pressure on monetary sovereignty. Authorities are encouraged to replace legacy regulatory frameworks with more flexible systems capable of monitoring liquidity and leverage in real time.

Large institutions such as BlackRock, JPMorgan Chase, and Nasdaq are piloting tokenised markets, with strong growth potential projected. Estimates range from a few trillion dollars to as much as 16 trillion dollars by 2030, highlighting both the scale of opportunity and uncertainty surrounding adoption.

Tokenisation reflects a broader shift in how value is created, exchanged, and trusted in the digital age, gradually moving finance towards more programmable and interconnected systems.

Its importance lies in how it may redefine the relationship between institutions, markets, and users, shaping not only efficiency and access but also the future balance between innovation, governance, and stability.

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ENISA opens public review of draft EUDI Wallet cybersecurity scheme

The European Union Agency for Cybersecurity has published a draft candidate scheme for the European Digital Identity Wallet and the electronic identity schemes under which it is provided. ENISA describes it as a draft version of the European Cybersecurity Certification Scheme for European Digital Identity Wallets.

ENISA states the draft addresses the certification of the cybersecurity of cloud services and is being developed under Article 48(2) of Regulation (EU) 2019/881, the Cybersecurity Act.

As per ENISA, an ad hoc working group has been set up to prepare the candidate scheme. The agency says the public review is intended to validate the principles and general organisation of the proposed scheme and to gather feedback on the draft and its annexes.

ENISA also says the draft candidate scheme is accompanied by an early draft of a separate document, Wallet-Related Service Provider Security Requirements, version 0.5.614, which is provided as a reference and for early opinion on the approach used to define those requirements.

The public review will remain open until the end of April 2026. ENISA has also said it will organise a webinar on 8 April to provide information about the draft candidate scheme and answer questions.

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Transparency push for online advertising systems

Researchers from the University of California and Iowa have warned that structural weaknesses in the digital advertising ecosystem continue to expose advertisers to hidden risks and fraud. The study highlights how complexity and limited transparency enable manipulation across the supply chain.

A key issue identified is ‘dark pooling’, in which lower-quality advertising inventory is bundled with premium placements, obscuring their true value. This practice can mislead buyers and distort pricing across the market.

The authors argue that current safeguards fail to address these vulnerabilities effectively, as responsibilities are fragmented among multiple stakeholders. This lack of coordination allows systemic issues to persist.

To address the problem, the researchers propose a shared vulnerability notification framework involving advertisers, publishers and intermediaries. The study suggests such collaboration could strengthen accountability and improve trust in digital advertising markets in the US.

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CNN develops agent infrastructure for AI media trading

CNN is developing an internal agent infrastructure as part of a plan to begin AI-driven media trading by early 2027. The company aims to complete protocol scoping by the end of the second quarter before moving into testing phases later in the year.

Testing will focus on how properties are interpreted by large language models and how buyers allocate budgets to agent-based systems. Executives say the timeline may change as the technology and market conditions continue to evolve.

The initiative combines in-house development with external technology partners, while aligning with industry frameworks to ensure compatibility. CNN is also working with standards bodies to ensure agent communication produces accurate outcomes for buyers.

Agentic protocols enable systems to exchange information, negotiate pricing, and manage tasks autonomously between buyers and sellers. The company is prioritising consistent communication to support efficient and reliable transactions.

Early efforts are centred on learning and experimentation, even without immediate revenue generation. Initial use cases are expected to focus on performance-driven campaigns before expanding into broader advertising activities.

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