Economic

Czech central bank invests in digital assets for the first time

The Czech National Bank (CNB) has acquired digital assets for the first time, creating a USD 1 million test portfolio outside its international reserves. The initiative includes Bitcoin, a USD stablecoin, and a tokenised deposit on the blockchain.

The portfolio aims to provide practical experience with digital assets and test related operational processes, without plans for further active investment.

Governor Aleš Michl explained that the idea originated in January 2025 to evaluate decentralised Bitcoin and explore its potential role in diversifying reserves. Discussions later included stablecoins, tokenised deposits, and future payment methods, with insights to be shared over the next two to three years.

The CNB emphasises that the koruna remains the country’s legal tender, while new digital payment and investment methods are increasingly emerging.

The test portfolio will examine the full chain of digital asset management, from technical administration and multi-level approvals to crisis scenarios, security measures, and AML compliance.

The CNB aims to maintain and develop internal expertise, ensuring staff gain practical knowledge transferable across teams. The investment is separated from the central bank’s international reserves and will not influence monetary policy or foreign exchange operations.

Alongside the portfolio, the CNB has launched CNB Lab, an innovation hub to test digital assets, blockchain solutions, AI tools, and payment innovations. The Lab will help the bank prepare for the future of finance while building practical experience and team expertise.

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New York Times lawsuit prompts OpenAI to strengthen privacy protections

OpenAI says a New York Times demand to hand over 20 million private ChatGPT conversations threatens user privacy and breaks with established security norms. The request forms part of the Times’ lawsuit over alleged misuse of its content.

The company argues the demand would expose highly personal chats from people with no link to the case. It previously resisted broader requests, including one seeking more than a billion conversations, and says the latest move raises similar concerns about proportionality.

OpenAI says it offered privacy-preserving alternatives, such as targeted searches and high-level usage data, but these were rejected. It adds that chats covered by the order are being de-identified and stored in a secure, legally restricted environment.

The dispute arises as OpenAI accelerates its security roadmap, which includes plans for client-side encryption and automated systems that detect serious safety risks without requiring broad human access. These measures aim to ensure private conversations remain inaccessible to external parties.

OpenAI maintains that strong privacy protections are essential as AI tools handle increasingly sensitive tasks. It says it will challenge any attempt to make private conversations public and will continue to update users as the legal process unfolds.

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New AI platforms approved for Surrey Schools classrooms

Surrey Schools has approved MagicSchool, SchoolAI, and TeachAid for classroom use, giving teachers access through the ONE portal with parental consent. The district says the tools are intended to support instruction while maintaining strong privacy and safety safeguards.

Officials say each platform passes rigorous reviews covering educational value, data protection, and technical security before approval. Teachers receive structured guidance on appropriate use, supported by professional development aligned with wider standards for responsible AI in education.

A two-year digital literacy programme helps staff explore online identity, digital habits, and safe technology use as AI becomes more common in lessons. Students use AI to generate ideas, check code, and analyse scientific or mathematical problems, reinforcing critical reasoning.

Educators stress that pupils are taught to question AI outputs rather than accept them at face value. Leaders argue this approach builds judgment and confidence, preparing young people to navigate automated systems with greater agency beyond school settings.

Families and teachers can access AI safety resources through the ONE platform, including videos, podcasts and the ‘Navigating an AI Future’ series. Materials include recordings from earlier workshops and parent sessions, supporting shared understanding of AI’s benefits and risks across the community.

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AI credentials grow as AWS launches practical training pathway

AWS is launching four solutions to help close the AI skills gap as demand rises and job requirements shift. The company positions the new tools as a comprehensive learning journey, offering structured pathways that progress from foundational knowledge to hands-on practice and formal validation.

AWS Skill Builder now hosts over 220 free AI courses, ranging from beginner introductions to advanced topics in generative and agentic AI. The platform enables learners to build skills at their own pace, with flexible study options that accommodate work schedules.

Practical experience anchors the new suite. The Meeting Simulator helps learners explain AI concepts to realistic personas and refine communication with instant feedback. Cohorts Studio offers team-based training through study groups, boot camps, and game-based challenges.

AWS is expanding its credential portfolio with the AWS Certified Generative AI Developer – Professional certification. The exam helps cloud practitioners demonstrate proficiency in foundation models, RAG architectures, and responsible deployment, supported by practice tasks and simulated environments.

Learners can validate hands-on capability through new microcredentials that require troubleshooting and implementation in real AWS settings. Combined credentials signal both conceptual understanding and task-ready skills, with Skill Builder’s more expansive library offering a clear starting point for career progression.

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AI could cut two-thirds of UK retail jobs

Automation and AI could drastically reduce jobs at one of the UK’s largest online retailers. Buy It Direct, which employs over 800 staff, predicts more than 500 positions may be lost within three years, as AI and robotics take over office and warehouse roles.

Chief executive Nick Glynne cited rising national living wage and insurance contributions as factors accelerating the company’s shift towards automation.

The firm has already started outsourcing senior roles overseas, including accountants, managers and IT specialists, in response to higher domestic costs.

HM Treasury defended its policies, highlighting reforms in business rates and international trade deals, alongside a capped corporation tax at 25%.

Meanwhile, concerns are growing across the UK about AI replacing jobs, with graduates in fields such as graphic design and computer science facing increasing competition from technological advancements.

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Qwen relaunch aims to unify Alibaba’s mobile AI ecosystem

Alibaba is preparing a major overhaul of its mobile AI apps, renaming Tongyi as Qwen and adding early agentic features. The update aims to make Qwen resemble leading chatbots while linking AI tools to Taobao and other services. Alibaba also plans a global version once the new design stabilises.

Over one hundred developers are working on the project as part of wider AI investments. Alibaba hopes Qwen can anchor its consumer AI strategy and regain momentum in a crowded market. It still trails Doubao and Yuanbao in user popularity and needs a clearer consumer path.

Monetisation remains difficult in China because consumers rarely pay for digital services. Alibaba thinks shopping features will boost adoption by linking AI directly to e-commerce use. Qwen will stay free for now, allowing the company to scale its user base before adding paid options.

Alibaba wants to streamline its overlapping apps by directing users to one unified Qwen interface. Consolidation is meant to strengthen brand visibility and remove confusion around different versions. A single app could help Alibaba stand out as Chinese firms race to deploy agentic AI.

Chinese and US companies continue to expand spending on frontier AI models, cloud infrastructure, and agent tools. Alibaba reported strong cloud growth and rising demand for AI products in its latest quarter. The Qwen relaunch is its largest attempt to turn technical progress into a viable consumer business.

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European Commission launches Culture Compass to strengthen the EU identity

The European Commission unveiled the Culture Compass for Europe, a framework designed to place culture at the heart of the EU policies.

An initiative that aims to foster the identity ot the EU, celebrate diversity, and support excellence across the continent’s cultural and creative sectors.

The Compass addresses the challenges facing cultural industries, including restrictions on artistic expression, precarious working conditions for artists, unequal access to culture, and the transformative impact of AI.

It provides guidance along four key directions: upholding European values and cultural rights, empowering artists and professionals, enhancing competitiveness and social cohesion, and strengthening international cultural partnerships.

Several initiatives will support the Compass, including the EU Artists Charter for fair working conditions, a European Prize for Performing Arts, a Youth Cultural Ambassadors Network, a cultural data hub, and an AI strategy for the cultural sector.

The Commission will track progress through a new report on the State of Culture in the EU and seeks a Joint Declaration with the European Parliament and Council to reinforce political commitment.

Commission officials emphasised that the Culture Compass connects culture to Europe’s future, placing artists and creativity at the centre of policy and ensuring the sector contributes to social, economic, and international engagement.

Culture is portrayed not as a side story, but as the story of the EU itself.

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AI tools deployed to set tailored attendance goals for English schools

England will introduce AI-generated attendance targets for each school, setting tailored improvement baselines based on the context and needs of each school. Schools with higher absence rates will be paired with strong performers for support. Thirty-six new Attendance and Behaviour Hubs will help drive the rollout.

Education Secretary Bridget Phillipson said raising attendance is essential for opportunity. She highlighted the progress made since the pandemic, but noted that variation remains too high. The AI targets aim to disseminate effective practices across all schools.

A new toolkit will guide schools through key transition points, such as the transition from Year 7 to Year 8. CHS South in Manchester is highlighted for using summer family activities to ease anxiety. Officials say early engagement can stabilise attendance.

CHS South Deputy Head Sue Burke said the goal is to ensure no pupil feels left out. She credited the attendance team for combining support with firm expectations. The model is presented as a template for broader adoption.

The policy blends AI analysis with pastoral strategies to address entrenched absence. Ministers argue that consistent attendance drives long-term outcomes. The UK government expects personalised targets and shared practice to embed lasting improvement.

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UAE executes first government payment using Digital Dirham

The United Arab Emirates has completed its first government financial transaction using the Digital Dirham, marking a significant milestone in its transition towards a fully digital economy.

The Ministry of Finance and Dubai Finance carried out the transaction in collaboration with the Central Bank of the UAE, confirming the country’s leadership in advancing next-generation financial technologies.

Part of the Central Bank’s Financial Infrastructure Transformation Programme, the pilot phase of the Digital Dirham aims to accelerate digital payment adoption and strengthen the UAE’s position as a global financial hub.

Senior officials, including Sheikh Mansour bin Zayed Al Nahyan and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, described the initiative as a strategic step toward improving transparency, efficiency, and integration across government financial systems.

The first pilot transaction was executed through the government payments platform mBridge, which facilitates instant settlements using central bank digital currencies.

A transaction was completed in under two minutes, demonstrating the system’s technical efficiency and reliability. The mBridge platform, fully integrated with the Digital Dirham initiative, enables secure, intermediary-free settlements, reducing costs while improving accuracy and transparency.

Officials emphasised that the Digital Dirham will serve as a cornerstone for a sustainable digital economy, reinforcing national financial stability and global competitiveness.

The initiative reflects the UAE’s commitment to adopting cutting-edge technologies that promote integration and innovation across the public and private sectors.

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EU regulators, UK and eSafety lead the global push to protect children in the digital world

Children today spend a significant amount of their time online, from learning and playing to communicating.

To protect them in an increasingly digital world, Australia’s eSafety Commissioner, the European Commission’s DG CNECT, and the UK’s Ofcom have joined forces to strengthen global cooperation on child online safety.

The partnership aims to ensure that online platforms take greater responsibility for protecting and empowering children, recognising their rights under the UN Convention on the Rights of the Child.

The three regulators will continue to enforce their online safety laws to ensure platforms properly assess and mitigate risks to children. They will promote privacy-preserving age verification technologies and collaborate with civil society and academics to ensure that regulations reflect real-world challenges.

By supporting digital literacy and critical thinking, they aim to provide children and families with safer and more confident online experiences.

To advance the work, a new trilateral technical group will be established to deepen collaboration on age assurance. It will study the interoperability and reliability of such systems, explore the latest technologies, and strengthen the evidence base for regulatory action.

Through closer cooperation, the regulators hope to create a more secure and empowering digital environment for young people worldwide.

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