Visa is expanding its stablecoin settlement capabilities by supporting new digital assets and blockchains. The payments giant will now include Global Dollar (USDG), PayPal USD (PYUSD), and Circle’s euro-backed EURC.
Settlement will extend to Stellar and Avalanche, broadening its support beyond Ethereum and Bitcoin. A new Paxos partnership aims to improve settlement speed and cut cross-border costs.
Visa executives said stablecoins could help fix inefficiencies in emerging markets. They also argued that trusted, scalable, interoperable assets can transform cross-border payments.
Visa is also pushing into new regions, with plans to expand settlement across Central and Eastern Europe, the Middle East, Africa, and Latin America. Recent Yellow Card and Bridge deals will enable stablecoin cards for daily use.
The firm stressed that a stablecoin strategy will become essential for institutions moving money globally.
According to Visa, the expansion will improve liquidity management, lower settlement costs, and provide 365-day transaction support. The network has processed over $225 million in stablecoin settlements, cementing its lead in digital payments.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The Instagram accounts of Adele, Future, Tyla, and Michael Jackson were hacked late Thursday to promote an unauthorised meme coin. Posts showed an AI image of the Future with a ‘FREEBANDZ’ coin, falsely suggesting ties to the rapper.
The token, launched on the Solana platform Pump.fun, surged briefly to nearly $900,000 in market value before collapsing by 98% after its creator dumped 700 million tokens. The scheme netted more than $49,000 in Solana for the perpetrator, suspected of being behind the account hijackings.
None of the affected celebrities has issued a statement, while Future’s Instagram account remains deactivated. The hack continues a trend of using celebrity accounts for crypto pump-and-dump schemes. Previous cases involved the UFC, Barack Obama, and Elon Musk.
Such scams are becoming increasingly common, with attackers exploiting the visibility of major social media accounts to drive short-lived token gains before leaving investors with losses.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Luxembourg introduced draft Law 8592 outlining registration, due diligence, and reporting duties for crypto-asset service providers. Mandatory reporting starts on 1 January 2026, covering crypto-assets, life insurance income, cross-border rulings, and expanded automatic tax data exchange.
The law applies to a broad range of crypto-asset activities, including portfolio management, custody, and exchange platforms. It also covers crypto-to-fund or crypto-to-crypto transactions and client order execution.
Luxembourg’s definition of crypto-assets aligns with EU MiCAR rules but includes all assets used for payment or investment purposes. Tax authorities will share reported data with the user’s country of residence by 30 September of the following year, starting with 2026.
CASPs must register with Luxembourg tax authorities by 30 June each year for reporting the previous year’s data. MiCAR-authorised operators are exempt from active registration. Penalties range from €5,000 for missed registrations to €250,000 for failing due diligence or reporting obligations.
The law also requires CASPs to verify user information through reasonable due-diligence procedures.
Law 8592 further updates rules on cross-border arrangements, online platform reporting, the Common Reporting Standard, and country-by-country reporting. DAC6 amendments now follow EU Court rulings, keeping lawyers’ client notifications while removing wider intermediary duties.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Australia has taken down 14,000 online scams since July 2023, with more than 3,000 involving crypto. The Australian Securities and Investments Commission (ASIC) has expanded scam enforcement to cover social media ads, investment fraud, and phishing websites.
ASIC Deputy Chair Sarah Court noted takedown powers refer suspicious sites to cybercrime specialists for removal. Common scams include AI trading bots, fake websites, and fraudulent celebrity endorsements, making fraud harder to detect.
Investment scams remain the leading threat, with over $73 million lost this year, though overall losses have fallen since 2023. Regulators urged caution with testimonials, AI investment claims, and schemes on WhatsApp, Telegram, and other messaging apps.
Crypto ATMs have also come under scrutiny. AUSTRAC and the AFP have investigated connections between crypto ATMs and scams, including pig-butchering operations. Australia has nearly 2,000 crypto ATMs, with new limits to curb crime and protect investors.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The European Union is accelerating work on a digital euro after the United States introduced new legislation to regulate the $288 billion stablecoin market. Brussels officials warn the euro may lose ground to dollar-backed tokens without swift action.
Sources told the Financial Times that regulators are revisiting issuing the digital euro on public blockchains such as Ethereum or Solana. Privacy concerns had blocked the option, but US developments have led Europe to reconsider.
The European Central Bank warned that reliance on foreign payment systems could weaken Europe’s financial sovereignty. A digital € would provide strategic autonomy, countering the risk of deposits flowing abroad and reinforcing the euro’s role in international settlements.
China has already rolled out its digital yuan, while the UK is evaluating a digital pound. The US market is dominated by companies such as Circle and Tether, with banks like Citi and JPMorgan preparing their own tokens.
Although smaller euro stablecoins exist, ECB officials say a digital € would cement Europe’s competitive position in the evolving global financial system.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
China is preparing to take a major step in the digital currency race by considering yuan-backed stablecoins, marking a sharp reversal from its earlier tough stance on cryptocurrencies. According to sources, Beijing’s cabinet will soon review a national strategy, with Hong Kong and Shanghai expected to spearhead the rollout thanks to Hong Kong’s recently passed Stablecoins Bill.
The move comes as Japan accelerates its own efforts. JPYC Inc., a Japanese fintech firm, has received regulatory approval to issue a yen-backed stablecoin, also called JPYC. The company plans to sell up to 1 trillion yen ($68 billion) worth of the tokens within three years, each pegged 1:1 to the yen and backed by liquid assets such as government bonds.
These parallel developments in East Asia could challenge the dominance of dollar-backed stablecoins, which currently make up nearly the entire global market. Analysts say the introduction of major Asian currencies into the mix could reshape digital finance and add momentum to regulatory frameworks emerging worldwide.
Stablecoins are increasingly seen as a bridge between traditional finance and digital assets, offering stability that other cryptocurrencies lack. Despite regulatory hurdles and slow adoption, the market is expected to surge to $4 trillion by 2030, signalling how pivotal the latest steps from China and Japan could be for the global financial system.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Brazil’s Chamber of Deputies Economic Development Commission will hold its first hearing on 20 August to examine a proposal to establish a Bitcoin Strategic Reserve. The legislation aims to diversify Treasury assets and protect reserves from currency and geopolitical risks.
Deputy Luiz Philippe de Orleans e Bragança requested the hearing to gather expert input from government agencies and financial institutions. Lawmaker Eros Biondini highlighted global examples such as El Salvador, the US, China, Dubai, and the EU to support the initiative.
The bill assigns custody responsibilities to Brazil’s Central Bank and Finance Ministry and requires biannual reports on RESBit performance and risk assessments.
Brazil leads Latin America in crypto adoption, ranking 10th globally, with nearly $76 billion in crypto traded last year. The proposal positions the country among nations exploring digital asset reserves as hedges against traditional currency.
Following the hearing, the proposal will undergo review by four Chamber committees before full consideration and Senate approval. Expert and monetary authority input will guide committee reviews and amendments, supporting a strong legislative framework for Brazil’s proposed Bitcoin reserve.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Coinbase positions stablecoins at the heart of AI-powered apps, bots, and machines. Over a sweltering August weekend in Brooklyn, around 100 developers from across the globe built tools enabling software to send and receive payments using these digital dollars.
Projects included instant-pay publishing platforms, chatbots charging small fees, and group marketplaces operating independently of traditional banks.
The company is promoting x402, an open-source protocol named after the ‘402 Payment Required’ internet error, designed to let apps and software settle payments instantly using stablecoins.
Developers were encouraged to integrate x402 into their projects, offering real-time microtransactions without relying on PayPal, Visa, or banks. Coinbase hopes the protocol becomes the go-to toolkit for app builders, similar to how Amazon Web Services underpins the internet.
Competition intensifies as Stripe, PayPal, Visa, and Mastercard explore stablecoin infrastructure. Recent US legislation regulating stablecoins provides legal clarity, encouraging developers to innovate confidently.
Despite traditional payment systems and slow-changing consumer habits, Coinbase’s hackathon showcased growing ambitions to develop AI financial infrastructure. Stablecoins are being positioned not just as digital assets, but as functional tools for the next generation of software payments.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Federal Reserve Vice Chair for Supervision Michelle Bowman has warned that banks must embrace blockchain technology or risk fading into irrelevance. At the Wyoming Blockchain Symposium on 19 August, she urged banks and regulators to drop caution and embrace innovation.
Bowman highlighted tokenisation as one of the most immediate applications, enabling assets to be transferred digitally without intermediaries or physical movement.
She explained that tokenised systems could cut operational delays, reduce risks, and expand access across large and smaller banks. Regulatory alignment, she added, could accelerate tokenisation from pilots to mainstream adoption.
Fraud prevention was also a key point of her remarks. Bowman said financial institutions face growing threats from scams and identity theft, but argued blockchain could help reduce fraud.
She called for regulators to ensure frameworks support adoption rather than hinder it, framing the technology as a chance for collaboration between the industry and the Fed.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Thirty crypto executives have urged Finance Minister Rachel Reeves to adopt a national stablecoin strategy, warning the UK could fall behind faster-moving markets. Their letter warned that the UK could remain a ‘rule-taker’ in digital assets without regulation.
The executives criticised the UK’s current legal definition of stablecoins as outdated and misleading, likening it to defining a cheque merely as’ paper concerning currency.’
They argue that stablecoins should be recognised as digital payment rails already used globally. Signatories include Coinbase, Kraken, Copper, Fireblocks, BitGo, and VanEck leaders, calling for regulation that treats stablecoins as financial infrastructure rather than risks.
Analysts stress stablecoins remain essential, acting as the ‘cash equivalent’ for digital assets and enabling faster blockchain transfers than traditional banking.
Industry experts, including HSBC’s Daragh Maher, emphasised that growth depends on a suitable regulatory environment. Clear rules could strengthen the UK’s global financial role and let stablecoins play a key part in its digital finance system.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
