Economic Archives | Page 289 of 685 | Digital Watch Observatory

Mastercard says stablecoins are not ready for everyday payments

Mastercard’s Chief Product Officer, Jorn Lambert, has highlighted that stablecoins still face significant hurdles before becoming widely used for everyday payments.

While the technology offers advantages such as fast transactions, 24/7 availability, low fees, and programmability, these features alone do not ensure consumer adoption. A seamless user experience and broad accessibility remain essential.

Mastercard envisions itself as a crucial infrastructure provider connecting crypto and traditional finance. The company has partnered with Paxos to support USDG stablecoin operations and backs other stablecoins like USDC and PYUSD.

Mastercard’s goal is to enable stablecoins to scale by integrating them into existing payment networks, combining global acceptance with regulatory compliance.

Currently, about 90% of stablecoin transactions are linked to crypto trading rather than retail purchases. User adoption is hindered by friction at checkout and limited merchant acceptance. Lambert compares stablecoins to prepaid cards, usable with some merchants but lacking widespread utility.

Furthermore, converting between fiat and stablecoins adds costs related to foreign exchange, regulation, and settlement.

Regulatory clarity, particularly in the US, is encouraging banks and institutions to explore stablecoin offerings. The evolving legal landscape may also prompt governments to issue their own digital currencies or regulate private stablecoins to prevent risks like dollarisation.

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How AI-generated video is reshaping the film industry

AI-generated video has evolved at breakneck speed, moving from distorted and unconvincing clips to hyper-realistic creations that rival traditional filmmaking. What was once a blurry, awkward depiction of Will Smith eating spaghetti in 2023 is now flawlessly rendered on platforms like Google’s Veo 3.

In just months, tools such as Luma Labs’ Dream Machine, OpenAI’s Sora, and Runway AI’s Gen-4 have redefined what’s possible, drawing the attention of Hollywood studios, advertisers, and artists eager to test the limits of this new creative frontier.

Major industry players are already experimenting with AI for previsualisation, visual effects, and even entire animated films. Lionsgate and AMC Networks have partnered with Runway AI, with executives exploring AI-generated family-friendly versions of blockbuster franchises like John Wick and The Hunger Games.

The technology drastically cuts costs for complex scenes, making it possible to create elaborate previews—like a snowstorm filled with thousands of soldiers—for a fraction of the traditional price. However, while some see AI as a tool to expand creative possibilities, resistance remains strong.

Critics argue that AI threatens traditional artistic processes, raises ethical concerns over energy use and data training, and risks undermining human creativity. The debate mirrors past technological shifts in entertainment—inevitable yet disruptive.

As Runway and other pioneers push toward immersive experiences in augmented and virtual reality, the future of filmmaking may no longer be defined solely by Hollywood, but by anyone with access to these powerful tools.

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Gemini expands tokenised stocks for EU investors

Gemini has significantly expanded its tokenised stock offerings for European investors, adding 14 new major US company shares to its platform. Notable additions include Nike, McDonald’s, Starbucks, Coca-Cola, Uber, and Yum! Brands.

The move brings the total tokenised equities available to 37, providing EU users with a diverse range of investment options.

Tokens are issued by Dinari and minted on the Arbitrum blockchain, ensuring efficient and secure trading. Gemini enables 24/7 access to these tokenised stocks, charging a 1.49% fee per transaction.

The latest launch follows recent additions such as Apple, Tesla, Amazon, and Microsoft, reflecting Gemini’s commitment to broadening market access.

Meanwhile, Robinhood’s tokenised stocks, offering 215 tokens to European users, face regulatory hurdles after OpenAI rejected its shares. The company says the product provides indirect retail investor exposure.

Other crypto exchanges like Kraken and Bybit have also entered the tokenised equities space. Kraken’s trading interface resembles traditional crypto pairs, while Bybit offers its xStocks on both centralized and decentralised platforms.

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Google strengthens position as Perplexity and OpenAI launch browsers

OpenAI is reportedly preparing to launch an AI-powered web browser in the coming weeks, aiming to compete with Alphabet’s dominant Chrome browser, according to sources cited by Reuters.

The forthcoming browser seeks to leverage AI to reshape how users interact with the internet, while potentially granting OpenAI deeper access to valuable user data—a key driver behind Google’s advertising empire.

If adopted by ChatGPT’s 500 million weekly active users, the browser could pose a significant challenge to Chrome, which currently underpins much of Alphabet’s ad targeting and search traffic infrastructure.

The browser is expected to feature a native chat interface, reducing the need for users to click through traditional websites. The features align with OpenAI’s broader strategy to embed its services more seamlessly into users’ daily routines.

While the company declined to comment on the development, anonymous sources noted that the browser is likely to support AI agent capabilities, such as booking reservations or completing web forms on behalf of users.

The move comes as OpenAI faces intensifying competition from Google, Anthropic, and Perplexity.

In May, OpenAI acquired the AI hardware start-up io for $6.5 billion, in a deal linked to Apple design veteran Jony Ive. The acquisition signals a strategic push beyond software and into integrated consumer tools.

Despite Chrome’s grip on over two-thirds of the global browser market, OpenAI appears undeterred. Its browser will be built on Chromium—the open-source framework powering Chrome, Microsoft Edge, and other major browsers. Notably, OpenAI hired two former Google executives last year who had previously worked on Chrome.

The decision to build a standalone browser—rather than rely on third-party plug-ins—was reportedly driven by OpenAI’s desire for greater control over both data collection and core functionality.

The control could prove vital as regulatory scrutiny of Google’s dominance in search and advertising intensifies. The United States Department of Justice is currently pushing for Chrome’s divestiture as part of its broader antitrust actions against Alphabet.

Other players are already exploring the AI browser space. Perplexity recently launched its own AI browser, Comet, while The Browser Company and Brave have introduced AI-enhanced browsing features.

As the AI race accelerates, OpenAI’s entry into the browser market could redefine how users navigate and engage with the web—potentially transforming search, advertising, and digital privacy in the process.

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Kazakhstan weighs adding crypto to national reserves

Kazakhstan may soon join the list of nations incorporating crypto into their national reserves. The National Bank may convert part of its gold and currency reserves into digital assets under a broader alternative investment strategy.

Timur Suleimenov, head of the National Bank, stated that crypto remains a volatile but potentially high-return investment. Inspired by international trends, including the rise of crypto ETFs and treasury firms, Kazakhstan has not ruled out allocating funds to crypto in the near future.

Plans are also underway to establish a national crypto treasury, which would store digital assets seized by law enforcement. To support this, the country will develop secure infrastructure, possibly involving cold wallet storage.

Authorities are even considering state-led crypto mining, where a portion of mined coins would be directed into national reserves. However, the government still intends to impose strong regulations, particularly against grey market activity not subject to taxation or oversight.

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US House passes NTIA cyber leadership bill after Salt Typhoon hacks

The US House of Representatives has passed legislation that would officially designate the National Telecommunications and Information Administration (NTIA) as the federal lead for cybersecurity across communications networks.

The move follows last year’s Salt Typhoon hacking spree, described by some as the worst telecom breach in US history.

The National Telecommunications and Information Administration Organization Act, introduced by Representatives Jay Obernolte and Jennifer McClellan, cleared the House on Monday and now awaits Senate approval.

The bill would rebrand an NTIA office to focus on both policy and cybersecurity, while codifying the agency’s role in coordinating cybersecurity responses alongside other federal departments.

Lawmakers argue that recent telecom attacks exposed major gaps in coordination between government and industry.

The bill promotes public-private partnerships and stronger collaboration between agencies, software developers, telecom firms, and security researchers to improve resilience and speed up innovation across communications technologies.

With Americans’ daily lives increasingly dependent on digital services, supporters say the bill provides a crucial framework for protecting sensitive information from cybercriminals and foreign hacking groups instead of relying on fragmented and inconsistent measures.

Pentagon awards AI contracts to xAI and others after Grok controversy

The US Department of Defence has awarded contracts to four major AI firms, including Elon Musk’s xAI, as part of a strategy to boost military AI capabilities.

Each contract is valued at up to $200 million and involves developing advanced AI workflows for critical national security tasks.

Alongside xAI, Anthropic, Google, and OpenAI have also secured contracts. Pentagon officials said the deals aim to integrate commercial AI solutions into intelligence, business, and defence operations instead of relying solely on internal systems.

Chief Digital and AI Officer Doug Matty states that these technologies will help maintain the US’s strategic edge over rivals.

The decision comes as Musk’s AI company faces controversy after its Grok chatbot was reported to have published offensive content on social media. Critics, including Democratic lawmakers, have raised ethical concerns about awarding national security contracts to a company under public scrutiny.

xAI insists its Grok for Movement platform will help speed up government services and scientific innovation.

Despite political tensions and Musk’s past financial support for Donald Trump’s campaign, the Pentagon has formalised its relationship with xAI and other AI leaders instead of excluding them due to reputational risks.

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Nvidia to restart China AI chip sales after US talks

Nvidia has announced plans to resume sales of its H20 AI chip in China, following meetings between CEO Jensen Huang and US President Donald Trump in Beijing.

The move comes after US export controls previously banned sales of the chip on national security grounds, costing Nvidia an estimated $15 billion in lost revenue.

The company confirmed it is filing for licences with the US government to restart deliveries of the H20 graphics processing unit, expecting approval shortly.

Nvidia also revealed a new RTX Pro GPU designed specifically for China, compliant with US export rules, offering a lower-cost alternative instead of risking further restrictions.

Huang, attending a supply chain expo in Beijing, described China as essential to Nvidia’s growth, despite rising competition from local firms like Huawei.

Chinese companies remain highly dependent on Nvidia’s CUDA platform, while US lawmakers have raised concerns about Nvidia engaging with Chinese entities linked to military or intelligence services.

Nvidia’s return to the Chinese market comes as Washington and Beijing show signs of easing trade tensions, including relaxed rare earth export rules from China and restored chip design services from the US.

Analysts note, however, that Chinese firms are likely to keep diversifying suppliers instead of relying solely on US chips for supply chain security.

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Zuckerberg unveils Meta’s multi-gigawatt AI data clusters

Meta Platforms is building several of the world’s largest data centres to power its AI ambitions, with the first facility expected to go online in 2026.

Chief Executive Mark Zuckerberg revealed on Threads that the site, called Prometheus, will be the first of multiple ‘titan clusters’ designed to support AI development instead of relying on existing infrastructure.

Frustrated by earlier AI efforts, Meta is investing heavily in talent and technology. The company has committed up to $72 billion towards AI and data centre expansion, while Zuckerberg has personally recruited high-profile figures from OpenAI, DeepMind, and Apple.

That includes appointing Scale AI’s Alexandr Wang as chief AI officer through a $14.3 billion stake deal and securing Ruoming Pang with a compensation package worth over $200 million.

The facilities under construction will have multi-gigawatt capacity, placing Meta ahead of rivals such as OpenAI and Oracle in the race for large-scale AI infrastructure.

One supercluster in Richland Parish, Louisiana, is said to cover an area nearly the size of Manhattan instead of smaller conventional data centre sites.

Zuckerberg confirmed that Meta is prepared to invest ‘hundreds of billions of dollars’ into building superintelligence capabilities, using revenue from its core advertising business on platforms like Facebook and Instagram to fund these projects instead of seeking external financing.

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Czech central bank enters crypto equity market

The Czech National Bank has taken a notable step towards digital asset exposure by acquiring over 51,000 shares in Coinbase. Details emerged in a recent US filing, which also showed a larger stake in Palantir, an AI firm with government data contracts.

Both assets now form part of the central bank’s evolving investment profile.

Coinbase has performed strongly in 2025, rising by more than 40% in the first half of the year. Market enthusiasm has been fuelled by renewed institutional confidence, as well as regulatory clarity in the United States following the approval of physically backed Bitcoin exchange-traded funds in 2024.

Palantir, meanwhile, has seen its shares soar by 80% over the same period, driven by investor interest in its AI capabilities and defence-sector contracts.

Despite the high-growth nature of these equities, analysts suggest the Czech National Bank’s positioning is less speculative and more aligned with index-tracking principles. Coinbase joined the S&P 500 in May 2025, while Palantir was added in late 2024.

The purchases may therefore reflect efforts to mirror benchmark indices rather than express bold investment convictions.

The presence of crypto and AI-linked firms within a conservative central bank’s portfolio underlines shifting attitudes towards emerging technologies. As institutions reassess growth and risk, previously fringe assets are becoming mainstream in central bank portfolios.

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