Economic Archives | Page 24 of 715 | Digital Watch Observatory

Canada launches AI learning initiative for federal public servants

Canada’s School of Public Service is organising the Learning Week on Artificial Intelligence, an initiative aimed at strengthening AI understanding across the federal public service.

The programme is linked to the Government of Canada’s AI Strategy for the Federal Public Service 2025–2027.

The AI learning programme is open to public servants at all levels and across the country. The initiative includes live events, virtual sessions, self-paced learning tools, and practical demonstrations related to AI technologies.

According to organisers, the programme aims to improve awareness of AI-related opportunities, challenges, and skills within the public service.

The initiative also aligns with broader public service priorities involving digital transformation, productivity, and process modernisation.

Sessions will examine potential applications of AI in areas including policy development, service delivery, and internal administrative functions.

The programme is intended to support responsible AI adoption and prepare public servants in Canada for organisational and operational changes linked to AI technologies.

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German lawmakers reject proposal to increase crypto taxation

A proposal by Germany’s Green Party to revise taxation rules for cryptocurrency investments has failed to advance in the Bundestag’s Finance Committee. The proposal aimed to remove the existing tax exemption on gains from digital assets held for more than one year.

Under current rules, profits from cryptocurrencies such as Bitcoin and Ethereum remain tax-free if assets are held beyond 12 months. Supporters of the proposal argued that current crypto tax treatment differs from broader capital gains taxation rules.

The initiative received limited parliamentary support, with concerns raised about potential legal inconsistencies and implementation challenges. Other parties, including those in the governing coalition, raised concerns that the reform could introduce new legal inconsistencies and fail to resolve perceived loopholes in the existing system.

At the same time, Germany continues to expand oversight of digital asset markets through new EU reporting requirements under the DAC8 directive. New reporting obligations under the EU’s DAC8 directive require service providers to supply detailed transaction data to tax authorities. The measures are intended to improve transparency and reporting related to cryptocurrency transactions.

Why does it matter?

The vote reflects a broader policy tension in Germany over how far governments should go in tightening taxation on digital assets without discouraging investment and innovation in the sector. It also signals that, for now, regulators are prioritising transparency measures like DAC8 reporting over immediate increases in tax burdens on crypto holders.

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Europol concludes major operation targeting criminal assets and crypto laundering

Europol has concluded the third operational phase of Project A.S.S.E.T., an international initiative focused on criminal asset tracing and money laundering investigations.

The operational phase took place between 19 and 22 May 2026 at Europol headquarters in The Hague and involved law enforcement agencies from 31 countries. More than 40 law enforcement agencies participated, including Asset Recovery Offices, Financial Intelligence Units, and specialised anti-money laundering teams from 31 countries.

The initiative also involved cooperation with Eurojust, INTERPOL, the European Public Prosecutor’s Office, and private-sector financial and cryptocurrency partners.

According to Europol, investigators identified bank accounts, cryptocurrency wallets, companies, vehicles, and real estate assets allegedly linked to criminal activities. Authorities additionally located two suspected criminals, with one arrested through the European Network of Fugitive Active Search Teams.

Europol said the operation generated intelligence related to emerging money laundering techniques and cross-border financial structures associated with organised crime networks. Investigators also reported identifying operational patterns involving cryptocurrencies and international asset concealment practices.

The operation followed an earlier cryptocurrency-focused enforcement phase conducted in October 2025.

European Commissioner for Internal Affairs and Migration Magnus Brunner said online fraud and crypto-related crime have become increasingly significant revenue sources for organised criminal groups. Europol officials additionally emphasised that international cooperation and financial intelligence increasingly play a central role in disrupting organised crime ecosystems and recovering illicit proceeds.

Europol said investigations are ongoing and that the full value of identified assets remains under assessment. Follow-up investigations are continuing across participating jurisdictions.

Why does it matter?

The operation reflects growing international focus on financial intelligence, cryptocurrency tracing, and cross-border asset recovery as organised crime groups increasingly rely on digital financial infrastructures. Furthermore, it demonstrates how law enforcement agencies and private-sector financial actors are strengthening cooperation to combat money laundering, online fraud, and illicit cryptocurrency operations across multiple jurisdictions simultaneously.

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Singapore launches new AI, cybersecurity and quantum-readiness programmes

Singapore has announced new initiatives aimed at supporting enterprise AI adoption, strengthening cybersecurity, and preparing digital infrastructure for future quantum-related risks.

The measures were announced at ATxEnterprise 2026 by Senior Minister of State for Digital Development and Information Tan Kiat How. They include new partnerships under the Digital Enterprise Blueprint, an AI adoption playbook for enterprises, SME awards recognising AI impact, and a pilot on quantum-safe technologies.

According to IMDA’s Singapore Digital Economy Report 2025, AI adoption among SMEs increased significantly during 2024.

IMDA and the Singapore Business Federation will introduce SME AI Impact Awards recognising enterprises using AI technologies in business operations. Up to 30 winners will be recognised across categories for proprietary AI tools and adoption of ready-to-use AI solutions.

The Digital Enterprise Blueprint is being expanded through partnerships involving AI training, digital skills development, and cybersecurity support for SMEs. One programme led by Grab will provide AI-related training and courses for SMEs in sectors including retail, e-commerce, and food services.

RSM Stone Forest IT will also launch cybersecurity initiatives involving phishing simulations, awareness webinars, and tabletop exercises for SMEs. With the two partnerships, IMDA aims to reach 12,000 more SMEs, contributing to its target of supporting 50,000 SMEs by 2029.

IMDA, SkillsFuture Singapore, and Workforce Singapore have also developed an AI for Enterprise Impact Playbook to help digitally progressive enterprises assess readiness, identify support, and plan next steps for AI adoption.

Singapore additionally announced a pilot initiative focused on quantum-safe technologies for telecommunications infrastructure. IMDA signed a Memorandum of Intent with Singtel, Ericsson, and NCS Singapore to test and validate quantum-safe migration approaches.

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International Labour Organization warns AI could reshape labour markets across the Arab region

The International Labour Organization (ILO) and the United Nations Economic and Social Commission for Western Asia (ESCWA) have examined how AI may reshape labour markets and employment patterns across the Arab region.

The organisations released a report exploring how AI adoption may transform jobs, productivity, and workforce dynamics by 2035. According to the report, outcomes will depend on policy choices related to skills development, labour protections, and social support systems.

The report outlines three possible scenarios ranging from inclusive AI-driven growth to increased inequality linked to insufficient labour protections and workforce adaptation measures.

One projected strong AI-driven economic growth, combined with large-scale investment in workforce transition and retraining programmes.

Another warned that rapid technological adoption without sufficient social safeguards could deepen inequality and displace large numbers of lower- and middle-skilled workers.

A third scenario envisaged a more gradual AI integration, supported by coordinated policy reforms and inclusive labour-market strategies.

The report identifies sectors such as healthcare, education, logistics, tourism, and digital services as areas where AI-related employment opportunities may emerge. At the same time, the organisations noted that automation could reduce demand for some routine and clerical occupations.

ILO Regional Director for Arab States Ruba Jaradat said AI technologies are already affecting workplaces across public administration and service sectors in the region. She added that nearly one-quarter of occupations may experience either displacement or technological augmentation linked to generative AI systems.

The analysis also highlighted widening skills mismatches between education systems and labour market demands, with some countries facing gaps ranging from 40% to 70%. The report also highlights the importance of investment in lifelong learning, labour market institutions, social protection, and AI governance frameworks.

The discussions took place during a preparatory session linked to the Arab Forum for Sustainable Development, where policymakers, labour organisations, and international experts examined how AI may affect youth employment, women workers, and lower-skilled populations across the region.

Why does it matter?

ILO highlights how developing and emerging economies may experience AI transitions differently depending on infrastructure, education systems, governance capacity, and investment levels. Policymakers across the Arab region are now under increasing pressure to modernise labour systems while ensuring that AI adoption supports inclusive growth instead of deepening social inequality.

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EU and Africa deepen cooperation on AI investment and digital infrastructure

European Commission has expanded cooperation discussions with African partners on AI through a new EU-Africa AI Tech Business Offer Event held in Brussels.

The event brought together policymakers, technology companies, development finance institutions, and digital cooperation organisations from Europe and Africa.

Government representatives from Kenya, Nigeria, Senegal, South Africa, and Tanzania participated in discussions alongside European digital companies and private sector organisations.

According to the European Commission, discussions focused on investment opportunities, AI infrastructure, and long-term cooperation between European and African digital ecosystems.

The initiative was organised under the Team Europe approach in cooperation with Smart Africa, the German development agency GIZ, and the Digital for Development Hub.

Why does it matter?

The event highlights increasing geopolitical and economic competition around ΑΙ partnerships, infrastructure, and digital influence across emerging markets. For Europe, cooperation with African countries supports broader goals linked to digital development, technological sovereignty, and global AI governance. For African governments, the partnerships may accelerate access to AI infrastructure, investment capital, skills development, and digital innovation ecosystems.

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European banks create Qivalis to develop MiCAR-compliant euro stablecoin

A consortium of leading European banks has established Qivalis, an Amsterdam-based joint venture that plans to issue a regulated euro-denominated stablecoin under the EU’s MiCAR framework.

Qivalis is working towards authorisation and supervision by the Dutch Central Bank as an Electronic Money Institution. The project follows an earlier announcement in September 2025 that nine major banks had joined forces to develop a MiCAR-compliant issuer of a euro stablecoin. BNP Paribas later joined the consortium, expanding institutional participation.

The participating banks include Banca Sella, CaixaBank, Danske Bank, DekaBank, ING, KBC, Raiffeisen Bank International, SEB, UniCredit and BNP Paribas. The initiative is positioned as a banking-led effort to create a regulated euro stablecoin for digital payments and on-chain financial activity.

Governance arrangements have also been formalised. Jan-Oliver Sell has been appointed CEO, Floris Lugt will serve as CFO, and Sir Howard Davies has been named Chairman of the Supervisory Board. All appointments remain subject to regulatory approval.

Qivalis plans to launch the euro-denominated stablecoin in the second half of 2026, subject to regulatory approval. The stablecoin is designed to support 24/7 cross-border payments, programmable payments, supply-chain management and digital asset settlement, including tokenised assets and cryptocurrencies.

Project leaders framed the initiative as a way to strengthen Europe’s role in the digital economy while embedding regulatory compliance, financial stability and data protection standards into future digital money infrastructure.

Why does it matter?

Qivalis shows how stablecoin development is moving beyond crypto-native companies and into the regulated banking sector. A MiCAR-compliant euro stablecoin backed by major European banks could strengthen Europe’s position in digital payments, programmable finance and tokenised asset settlement, while offering a regulated alternative to dollar-dominated stablecoins. Its impact will depend on regulatory approval, market adoption and whether banks can make blockchain-based payment rails useful at scale.

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UK expands regulatory and infrastructure plans for digital finance

The Bank of England plans to publish draft rules for systemic stablecoins in June, as part of the UK’s broader digital asset regulatory framework.

Deputy Governor Sarah Breeden outlined the plans during the City Week conference in London.

According to officials, regulators are reviewing earlier proposals following industry feedback related to compliance and market impact. The proposals may include limits on overall stablecoin issuance and requirements for banks issuing stablecoins through separate legal entities.

Authorities are also considering branding requirements intended to distinguish stablecoins from insured bank deposits.

Breeden also referred to growing institutional interest in tokenised financial markets and distributed ledger-based settlement systems.

Several financial institutions, including HSBC, Euroclear, and London Stock Exchange Group, are expected to participate in the UK’s digital securities sandbox later this year.

Alongside private-sector initiatives, the Bank of England is also upgrading its Real-Time Gross Settlement infrastructure and exploring pilot projects involving tokenised government debt instruments. Authorities additionally aim to extend settlement operating hours toward near-continuous availability by the early 2030s.

Why does it matter?

The UK’s push to regulate stablecoins and support tokenized finance highlights how major economies are increasingly competing to become leading hubs for digital financial innovation.

Decisions taken by the Bank of England could influence how traditional banking, payments, and capital markets evolve globally as governments and institutions move toward blockchain-based financial infrastructure.

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European Commission opens consultation on crypto-assets regulation

The European Commission has launched a public consultation on the functioning of the EU’s Markets in Crypto-Assets Regulation, seeking feedback from stakeholders and the wider public as digital asset markets continue to evolve.

Implemented in 2024, MiCA established the EU’s harmonised regulatory framework for crypto-assets and related services. It covers crypto-assets, asset-referenced tokens, e-money tokens, stablecoins, their issuers and crypto-asset service providers operating across the bloc.

The Commission said crypto-asset markets and the wider policy landscape have continued to expand since MiCA was developed. It is assessing whether the current framework remains fit for purpose in light of market and international regulatory developments.

The consultation seeks feedback on MiCA’s main building blocks. It includes a public questionnaire for individuals and a targeted consultation covering more technical and legal questions for stakeholders such as digital asset issuers and service providers, financial institutions, technology providers, academia, think tanks, industry bodies, consumer organisations and the EU public authorities.

Feedback submissions are open until 31 August. The Commission said the responses will inform its future policy work on digital assets.

Why does it matter?

The consultation shows that crypto regulation is entering a more adaptive phase, in which policymakers are assessing whether existing rules can keep pace with evolving markets and international approaches. Any future adjustment to MiCA could affect stablecoin issuers, crypto service providers, investors and wider digital finance policy in the EU, while also influencing regulatory debates in other jurisdictions.

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PARITY Act pushes new US crypto tax relief framework

A bipartisan group of US lawmakers has introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act, known as the PARITY Act, as Congress continues expanding its focus on cryptocurrency regulation and taxation.

Representatives Steven Horsford, Max Miller, Suzan DelBene and Mike Carey introduced the proposal on 19 May, calling for clearer and more practical tax standards for digital assets. Supporters say the bill is intended to provide clarity, consistency and guardrails for the taxation of digital asset activities.

The proposal would create a deemed-basis rule for regulated, dollar-pegged payment stablecoins, treating certain digital dollars used like cash as cash for tax purposes. Lawmakers say the measure is designed to reduce administrative burdens for the Internal Revenue Service, provide consumer relief in routine transactions and prevent misuse through trading or arbitrage activity.

The bill would also provide tax certainty for foreign investors trading on US digital asset platforms, extend securities-lending tax principles to qualifying digital asset loans and apply anti-abuse provisions such as wash-sale and constructive-sale rules to digital assets.

Additional provisions would align the tax treatment of professional digital asset dealers and active traders with existing securities markets by allowing a mark-to-market election. The bill would also address the ‘phantom income’ issue for miners and stakers by creating an election for when digital asset rewards are taxed, modernise charitable contribution rules for digital assets and clarify that passive protocol-level staking by investment funds is not a trade or business.

The measure arrives as Congress debates broader cryptocurrency legislation linked to market structure and stablecoin oversight, including the CLARITY Act. Together, the proposals show how US lawmakers are increasingly addressing digital assets through taxation, consumer protection, market integrity and financial regulation.

Why does it matter?

Crypto taxation remains one of the main barriers to wider digital asset use, especially for stablecoin payments, staking, lending and routine transactions. The PARITY Act would aim to make tax treatment more predictable while applying anti-abuse rules to digital assets that are more closely aligned with traditional financial markets. Its impact would depend on whether Congress can integrate tax reform with wider debates on stablecoins, market structure and investor protection.

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