Economic

Coinbase sounds alarm on corporate Bitcoin hoarding

Coinbase has raised concerns over the growing number of listed companies allocating significant funds to Bitcoin reserves. In its latest market outlook, the exchange warned that while the trend may appear bullish in the short term, it introduces potential systemic risks to the wider crypto sector.

Following changes to accounting standards last December, firms are now permitted to report unrealised gains from crypto assets. The shift has sparked a surge in demand, with 126 public companies currently holding over 819,000 BTC—valued at more than $87 billion.

Many of these companies have used debt financing, often via convertible bonds, to build their Bitcoin positions.

Coinbase cautioned that a downturn in Bitcoin’s price could trigger widespread selling, as companies attempt to repay creditors. Such a scenario could lead to market-wide liquidations and sharp instability, well before any actual defaults occur.

Despite this warning, Coinbase remains confident in Bitcoin’s long-term trajectory.

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Armenia plans major AI hub with NVIDIA and Firebird

Armenia has unveiled plans to develop a $500mn AI supercomputing hub in partnership with US tech leader NVIDIA, AI cloud firm Firebird, and local telecoms group Team.

Announced at the Viva Technology conference in Paris, the initiative marks the largest tech investment ever seen in the South Caucasus.

Due to open in 2026, the facility will house thousands of NVIDIA’s Blackwell GPUs and offer more than 100 megawatts of scalable computing power. Designed to advance AI research, training and entrepreneurship, the hub aims to position Armenia as a leading player in global AI development.

Prime Minister Nikol Pashinyan described the project as the ‘Stargate of Armenia’, underscoring its potential to transform the national tech sector.

Firebird CEO Razmig Hovaghimian said the hub would help develop local talent and attract international attention, while the Afeyan Foundation, led by Noubar Afeyan, is set to come on board as a founding investor.

Instead of limiting its role to funding, the Armenian government will also provide land, tax breaks and simplified regulation to support the project, strengthening its push toward a competitive digital economy.

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Vietnam legalises crypto under new digital technology law

Vietnam has officially legalised crypto assets as part of a landmark digital technology law passed by the National Assembly on 14 June. Set to take effect on 1 January 2026, the law creates a regulatory framework classifying digital assets as virtual or crypto assets.

Neither category includes securities or digital fiat currencies. The government will now develop specific business rules and oversight mechanisms while enforcing cybersecurity and anti-money laundering standards to meet international expectations.

The new law also highlights Vietnam’s ambition to become a leader in digital technology innovation. It offers extensive incentives for enterprises in artificial intelligence, semiconductor manufacturing, and digital infrastructure.

Vietnam’s authorities have recently taken action against significant crypto scams. In February 2025, police arrested four people behind a fraudulent mining platform, which defrauded over 200 victims.

In December 2024, Hanoi police stopped a scam involving the fake Quantum Financial System cryptocurrency, which had stolen over $1 million. These efforts demonstrate Vietnam’s commitment to protecting investors and strengthening the digital asset ecosystem.

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Amazon launches AU$ 20 bn investment in Australian solar-powered data centres

Amazon will invest AU$ 20 billion to expand its data centre infrastructure in Australia, using solar and wind power instead of traditional energy sources.

The plan includes power purchase agreements with three utility-scale solar plants developed by European Energy, one of which—Mokoan Solar Park in Victoria—is already operational. The other two projects, Winton North and Bullyard Solar Parks, are expected to lift total solar capacity to 333MW.

The investment supports Australia’s aim to enhance its cloud and AI capabilities. Amazon’s commitment includes purchasing over 170MW of power from these projects, contributing to both data centre growth and the country’s renewable energy transition.

According to the International Energy Agency, electricity demand from data centres is expected to more than double by 2030, driven by AI.

Amazon Web Services CEO Matt Garman said the move positions Australia to benefit from AI’s economic potential. The company, already active in solar projects across New South Wales, Queensland and Victoria, continues to prioritise renewables to decarbonise operations and meet surging energy needs.

Instead of pursuing growth through conventional means, Amazon’s focus on clean energy could set a precedent for other tech giants expanding in the region.

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Quantum computing threatens Bitcoin: Experts debate timeline

Recent breakthroughs in quantum computing have revived fears about the long-term security of Bitcoin (BTC).

With IBM aiming to release the first fault-tolerant quantum computer, the IBM Quantum Starling, by 2029, experts are increasingly concerned that such advancements could undermine Bitcoin’s cryptographic backbone.

Bitcoin currently relies on elliptic curve cryptography (ECC) and the SHA-256 hashing algorithm to secure wallets and transactions. However, both are potentially vulnerable to Shor’s algorithm, which a sufficiently powerful quantum computer could exploit.

Google quantum researcher Craig Gidney warned in May 2025 that quantum resources required to break RSA encryption had been significantly overestimated. Although Bitcoin uses ECC, not RSA, Gidney’s research hinted at a threat window between 2030 and 2035 for crypto systems.

Opinions on the timeline vary. Adam Back, Blockstream CEO and early Bitcoin advocate, believes a quantum threat is still at least two decades away. However, he admitted that future progress could force users to migrate coins to quantum-safe wallets—potentially even Satoshi Nakamoto’s dormant holdings.

Others are more alarmed. David Carvalho, CEO of Naoris Protocol, claimed in a June 2025 op-ed that Bitcoin could be cracked within five years, pointing to emerging technologies like Microsoft’s Majorana chip. He estimated that nearly 30% of BTC is stored in quantum-vulnerable addresses.

‘Just one breach could destroy trust in the entire ecosystem,’ Carvalho warned, noting that BlackRock has already acknowledged the quantum risk in its Bitcoin ETF filings.

Echoing this urgency, billionaire investor Chamath Palihapitiya said in late 2024 that SHA-256 could be broken within two to five years if companies scale quantum chips like Google’s 105-qubit Willow. He urged the crypto industry to start updating encryption protocols before it’s too late.

While truly fault-tolerant quantum machines capable of breaking Bitcoin are not yet available, the accelerating pace of research suggests that preparing for a quantum future is no longer optional—it’s a necessity.

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OpenAI turns to Google Cloud in shift from solo AI race

OpenAI has entered into an unexpected partnership with Google, using Google Cloud to support its growing AI infrastructure needs.

Despite being fierce competitors in AI, the two tech giants recognise that long-term success may require collaboration instead of isolation.

As the demand for high-performance hardware soars, traditional rivals join forces to keep pace. OpenAI, previously backed heavily by Microsoft, now draws from Google’s vast cloud resources, hinting at a changing attitude in the AI race.

Rather than going it alone, firms may benefit more by leveraging each other’s strengths to accelerate development.

Google CEO Sundar Pichai, speaking on a podcast, suggested there is room for multiple winners in the AI sector. He even noted that a major competitor had ‘invited me to a dance’, underscoring a new phase of pragmatic cooperation.

While Google still faces threats to its search dominance from tools like ChatGPT, business incentives may override rivalry.

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Amazon and Walmart consider digital dollar tokens

Retail powerhouses Amazon and Walmart are reportedly examining the launch of their dollar-backed stablecoins. As per sources cited by the Wall Street Journal, the move could significantly cut transaction costs, streamline payments, and strengthen their hold on digital commerce.

The interest comes amid a broader industry shift. Tech leaders Apple, Google, Airbnb, and social platform X are exploring stablecoins. The aim is to reduce payment fees and improve international transactions.

X, led by Elon Musk, is pushing to integrate stablecoins into its X Money app, while Airbnb is negotiating to bypass card networks through partnerships with processors like Worldpay.

The GENIUS Act, a proposed law to regulate stablecoins in the United States, is scheduled for a final Senate vote on 17 June. The legislation requires stablecoins to be fully backed and mandates audits for major issuers.

If approved, it could set the tone for global corporate adoption.

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Taiwan tightens rules on chip shipments to China

Taiwan has officially banned the export of chips and chiplets to China’s Huawei and SMIC, joining the US in tightening restrictions on advanced semiconductor transfers.

The decision follows reports that TSMC, the world’s largest contract chipmaker, was unknowingly misled into supplying chiplets used in Huawei’s Ascend 910B AI accelerator. The US Commerce Department had reportedly considered a fine of over $1 billion against TSMC for that incident.

Taiwan’s new rules aim to prevent further breaches by requiring export permits for any transactions with Huawei or SMIC.

The distinction between chips and chiplets is key to the case. Traditional chips are built as single-die monoliths using the same process node, while chiplets are modular and can combine various specialised components, such as CPU or AI cores.

Huawei allegedly used shell companies to acquire chiplets from TSMC, bypassing existing US restrictions. If TSMC had known the true customer, it likely would have withheld the order. Taiwan’s new export controls are designed to ensure stricter oversight of future transactions and prevent repeat deceptions.

The broader geopolitical stakes are clear. Taiwan views the transfer of advanced chips to China as a national security threat, given Beijing’s ambitions to reunify with Taiwan and the potential militarisation of high-end semiconductors.

With Huawei claiming its processors are nearly on par with Western chips—though analysts argue they lag two to three generations behind—the export ban could further isolate China’s chipmakers.

Speculation persists that Taiwan’s move was partly influenced by negotiations with the US to avoid the proposed fine on TSMC, bringing both countries into closer alignment on chip sanctions.

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Trump’s financial report reveals major crypto and property income

Donald Trump’s latest financial disclosure reveals substantial cryptocurrency and real estate earnings. The US President declared $57.35 million in income from token sales tied to World Liberty Financial, alongside holdings of over 15 billion governance tokens in the same venture.

The filing, signed on 13 June, does not specify its coverage period but appears to reflect finances through December 2024. The timing suggests that more recent profits from the Trump family’s crypto activities were not included.

Beyond digital assets, the report shows Trump’s income remains heavily reliant on property holdings. His Florida resorts and Mar-a-Lago private club brought in over $217 million, while a development licence in Vietnam added $5 million.

A significant portion of Trump’s paper wealth remains linked to his stake in Trump Media & Technology Group, the parent company of Truth Social.

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Switzerland’s unique AI path: Blending innovation, governance, and local empowerment

In his recent blog post ‘Advancing Swiss AI Trinity: Zurich’s entrepreneurship, Geneva’s governance, and Communal subsidiarity,’ Jovan Kurbalija proposes a distinctive roadmap for Switzerland to navigate the rapidly evolving landscape of AI. Rather than mimicking the AI power plays of the United States or China, Kurbalija argues that Switzerland can lead by integrating three national strengths: Zurich’s thriving innovation ecosystem, Geneva’s global leadership in governance, and the country’s foundational principle of subsidiarity rooted in local decision-making.

Zurich, already a global tech hub, is positioned to drive cutting-edge development through its academic excellence and robust entrepreneurial culture. Institutions like ETH Zurich and the presence of major tech firms provide a fertile ground for collaborations that turn research into practical solutions.

With AI tools becoming increasingly accessible, Kurbalija emphasises that success now depends on how societies harness the interplay of human and machine intelligence—a field where Switzerland’s education and apprenticeship systems give it a competitive edge. Meanwhile, Geneva is called upon to spearhead balanced international governance and standard-setting for AI.

Kurbalija stresses that AI policy must go beyond abstract discussions and address real-world issues—health, education, the environment—by embedding AI tools in global institutions and negotiations. He notes that Geneva’s experience in multilateral diplomacy and technical standardisation offers a strong foundation for shaping ethical, inclusive AI frameworks.

The third pillar—subsidiarity—empowers Swiss cantons and communities to develop AI that reflects local values and needs. By supporting grassroots innovation through mini-grants, reimagining libraries as AI learning hubs, and embedding AI literacy from primary school to professional training, Switzerland can build an AI model that is democratic and inclusive.

Why does it matter?

Kurbalija’s call to action is clear: with its tools, talent, and traditions aligned, Switzerland must act now to chart a future where AI serves society, not the other way around.

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