Economic

Digital euro will not replace cash, says ECB

Cash will stay central to the eurozone’s financial system, the ECB confirmed, as work on the digital euro moves forward. A board member Piero Cipollone said euro banknotes and coins will be supplemented, not replaced, by a digital version to protect payment autonomy in Europe.

The ECB’s commitment follows a surge in the use of private digital currencies and stablecoins, which are increasingly used for daily transactions and international transfers. They see the digital euro as a secure answer to the rising influence of foreign stablecoins, especially US dollar-backed ones.

Despite the digital push, Cipollone stressed cash is vital, especially in crises when digital systems might fail. The ECB wants Europeans to have access to physical cash and digital euros alike, all with legal tender status and full usability.

Meanwhile, the ECB has acknowledged lukewarm interest from the public. A March study revealed Europeans were reluctant to allocate significant funds to a digital euro.

Separately, ECB adviser Jürgen Schaaf warned that Europe must implement unified regulation to avoid dominance by US dollar-backed stablecoins and preserve monetary sovereignty.

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AI adoption soothes stress even as job fears rise among employees

A recent Fortune survey indicates that 61 percent of white‑collar professionals expect AI to make their roles, or even their entire teams, obsolete within 3–5 years, yet most continue to rely on AI tools daily without visible concern.

Seventy percent of respondents credit AI with boosting their creativity and productivity, and 40  percent say it has eased stress and improved work‑life balance. Despite these benefits, many admit to ‘feigning’ AI use in workplace settings, often driven by peer pressure or a lack of formal training.

Executive commentary underscores the tension: senior business leaders, including Jim Farley and Dario Amodei, predict rapid AI‑driven disruption of white‑collar roles. Some executives forecast up to 50  percent of certain job categories could be eliminated, though others argue AI may open new opportunities.

Academic studies suggest a more nuanced impact: AI is reshaping role definitions by automating routine tasks while increasing demand for complementary skills, such as ethics, teamwork, and digital fluency. Wage benefits are growing in jobs that effectively blend AI with human oversight.

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Weak cyber hygiene in smart devices risks national infrastructure

The UK’s designation of data centres as Critical National Infrastructure highlights their growing strategic importance, yet a pressing concern remains over vulnerabilities in their OT and IoT systems. While IT security often receives significant investment, the same cannot be said for other technologies.

Attackers increasingly target these overlooked systems, gaining access through insecure devices such as IP cameras and biometric scanners. Many of these operate on outdated firmware and lack even basic protections, making them ideal footholds for malicious actors.

There have already been known breaches, with OT systems used in botnet activity and crypto mining, often without detection. These attacks not only compromise security in the UK but can destabilise infrastructure by overloading resources or bypassing safeguards.

Addressing these threats requires full visibility across all connected systems, with real-time monitoring, wireless traffic analysis, and network segmentation. Experts urge data centre operators to act now, not in response to a breach, but to prevent one entirely.

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Altman shares first glimpse of GPT-5 via Pantheon screenshot

OpenAI CEO Sam Altman shared a screenshot on X showing GPT-5 in action. The post casually endorsed the animated sci-fi series Pantheon, a cult tech favourite exploring general AI.

When asked if GPT-5 also recommends the show, Altman replied with a screenshot: ‘turns out yes’. It marked one of the earliest public glimpses of the new model, hinting at expanded capabilities.

GPT-5 is expected to outperform its predecessors, with a larger context window, multimodal abilities, and more agentic task handling. The screenshot also shows that some quirks remain, such as its fondness for the em dash.

The model identified Pantheon as having a 100% critic rating on Rotten Tomatoes and described it as ‘cerebral, emotional, and philosophically intense’. Business Insider verified the score and tone of the reviews.

OpenAI faces mounting pressure to keep pace with rivals like Google DeepMind, Meta, xAI, and Anthropic. Public teasers such as this one suggest GPT-5 will soon make a broader debut.

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Hackers infiltrate Southeast Asian telecom networks

A cyber group breached telecoms across Southeast Asia, deploying advanced tracking tools instead of stealing data. Palo Alto Networks’ Unit 42 assesses the activity as ‘associated with a nation-state nexus’.

A hacking group gained covert access to telecom networks across Southeast Asia, most likely to track users’ locations, according to cybersecurity analysts at Palo Alto Networks’ Unit 42.

The campaign lasted from February to November 2024.

Instead of stealing data or directly communicating with mobile devices, the hackers deployed custom tools such as CordScan, designed to intercept mobile network protocols like SGSN. These methods suggest the attackers focused on tracking rather than data theft.

Unite42 assessed the activity ‘with high confidence’ as ‘associated with a nation state nexus’. The Unit notes that ‘this cluster heavily overlaps with activity attributed to Liminal Panda, a nation state adversary tracked by CrowdStrike’; according to CrowdStrike, Liminal Panda is considered to be a ‘likely China-nexus adversary’. It further states that ‘while this cluster significantly overlaps with Liminal Panda, we have also observed overlaps in attacker tooling with other reported groups and activity clusters, including Light Basin, UNC3886, UNC2891 and UNC1945.’

The attackers initially gained access by brute-forcing SSH credentials using login details specific to telecom equipment.

Once inside, they installed new malware, including a backdoor named NoDepDNS, which tunnels malicious data through port 53 — typically used for DNS traffic — in order to avoid detection.

To maintain stealth, the group disguised malware, altered file timestamps, disabled system security features and wiped authentication logs.

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The US considers chip tracking to prevent smuggling to China

The US is exploring how to build better location-tracking into advanced chips, as part of an effort to prevent American semiconductors from ending up in China.

Michael Kratsios, a senior official behind Donald Trump’s AI strategy, confirmed that software or physical updates to chips are being considered to support traceability.

Instead of relying on external enforcement, Washington aims to work directly with the tech industry to improve monitoring of chip movements. The strategy forms part of a broader national plan to counter smuggling and maintain US dominance in cutting-edge technologies.

Beijing recently summoned Nvidia representatives to address concerns over American proposals linked to tracking features and perceived security risks in the company’s H20 chips.

Although US officials have not directly talked with Nvidia or AMD on the matter, Kratsios clarified that chip tracking is now a formal objective.

The move comes even as Trump’s team signals readiness to lift certain export restrictions to China in return for trade benefits, such as rare-earth magnet sales to the US.

Kratsios criticised China’s push to lead global AI regulation, saying countries should define their paths instead of following a centralised model. He argued that the US innovation-first approach offers a more attractive alternative.

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Google AI Mode raises fears over control of news

Google’s AI Mode has quietly launched in the UK, reshaping how users access news by summarising information directly in search results.

By paraphrasing content gathered across the internet, the tool offers instant answers while reducing the need to visit original news sites.

Critics argue that the technology monopolises UK information by filtering what users see, based on algorithms rather than editorial judgement. Concerns have grown over transparency, fairness and the future of independent journalism.

Publishers are not compensated for content used by AI Mode, and most users rarely click through to the sources. Newsrooms fear pressure to adapt their output to align with Google’s preferences or risk being buried online.

While AI may streamline convenience, it lacks accountability. Regulated journalism must operate under legal frameworks, whereas AI faces no such scrutiny even when errors have real consequences.

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AI tools like Grok 4 may make developers obsolete, Musk suggests

Elon Musk has predicted a major shift in software development, claiming that AI is turning coding from a job into a recreational activity. The xAI CEO believes AI has removed much of the ‘drudgery’ from writing software.

Replying to OpenAI President Greg Brockman, Musk compared the future of coding to painting. He suggested that software creation will be more creative and expressive, no longer requiring professional expertise for functional outcomes.

Musk, a co-founder of OpenAI, left the organisation after a public dispute with the current CEO, Sam Altman. He later launched xAI, which now operates the Grok chatbot as a rival to ChatGPT, Gemini and Claude.

Generative AI firms are accelerating efforts in automated coding. OpenAI recently launched Codex to create a cloud-based software engineering agent, while Microsoft released GitHub Spark AI to generate apps from natural language.

xAI’s latest offering, Grok 4, supports over 20 programming languages and integrates with code editors. It enables developers to write, debug, and understand code using commands.

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Google rolls out Deep Think to Gemini AI Ultra users

Google has launched Deep Think for AI Ultra subscribers within the Gemini app, with the Gemini 2.5-based model also available to select mathematicians, offering powerful tools for complex problem-solving and mathematical exploration.

Google’s Deep Think AI, improved from its I/O version, offers quicker reasoning and enhanced usability. It achieved Bronze-level performance on the 2025 IMO standard in internal benchmarks.

Select mathematicians are now using Deep Think to test conjectures. Google notes its excellence in creative problem-solving through parallel reasoning for refined outcomes.

The model has been given extended inference time, enabling deeper analysis and more inventive answers. Reinforcement learning techniques guide it to explore longer reasoning paths, improving its problem-solving ability.

Beyond maths, Google considers Deep Think useful for design, planning, and coding. It can enhance web development, reason through scientific literature, and tackle algorithmic challenges, supporting users with strategic and iterative thinking across disciplines.

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Tesla grants Musk $29 billion stock deal amid strategic shift

Tesla has awarded CEO Elon Musk a substantial new compensation package worth approximately $29 billion in stock options, signalling the company’s continued reliance on Musk’s leadership at a critical juncture.

This interim payment includes 96 million new Tesla shares and aims to incentivise Musk as Tesla transitions from a struggling auto business toward futuristic ventures like robotaxis and humanoid robots.

The decision follows a Delaware court ruling last year invalidating Musk’s 2018 pay package, valued at over $50 billion, due to procedural and fairness concerns.

Under the new arrangement, Musk must remain Tesla’s chief executive for at least two more years to fully secure the shares, which he can acquire at the original 2018 price of $23.34 per share, considerably below Tesla’s current market valuation.

He must hold these shares for five years, aligning his financial interests closely with the company’s performance.

Tesla’s board will also propose a long-term CEO compensation plan for shareholder approval in November, underscoring its commitment to retaining Musk despite recent controversies and challenges.

The announcement comes amid investor concerns over Tesla’s declining sales, intensified competition, and damage to brand perception linked to Musk’s vocal political endorsements, notably his public support of former US President Donald Trump.

Data from S&P Global Mobility indicates a notable drop in customer brand loyalty since Musk’s political declarations last year.

Nevertheless, the board remains convinced that Musk’s leadership is critical, describing the stock award as essential for securing his ongoing commitment amid his expanding business interests.

Market reactions to Musk’s compensation package have generally been positive, with Tesla’s shares gaining almost 2% following the announcement.

Source: The Guardian

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