Bank of England calls for urgent digital payments reform

Bank of England Governor Andrew Bailey has called for urgent digital upgrades to the UK’s retail payments system to support future growth.

At the Mansion House dinner, he said upgrading infrastructure is vital to support the economy and stay globally competitive.

Bailey remains sceptical about launching a digital pound. While he acknowledged that stablecoins may have a future role, he stressed they must not replace commercial bank money and must be appropriately regulated.

He also warned against global banks issuing their stablecoins, which could reduce lending capacity.

He went on to express concern over rising global trade tensions, calling the shift in policy ‘the most sudden and fundamental’ in decades.

Bailey urged the IMF and WTO to step in and help restore cooperation in the international trading system.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

US real estate firm embraces crypto transactions

Christie’s International Real Estate has established a dedicated team that specialises in cryptocurrency transactions. It has become the first major US brokerage to handle home sales exclusively with digital assets.

The unit emerged after several high-profile deals, including a $65 million purchase in Beverly Hills, signalling growing demand from buyers seeking privacy and faster payments.

The new division manages a portfolio exceeding $1 billion in properties available solely for crypto purchase. Notable listings include the Invisible House in Joshua Tree and La Fin in Bel Air.

Transactions often maintain buyer anonymity, with legal representatives verifying funds and many buyers using LLCs funded by crypto, reducing transparency compared to traditional bank-backed purchases.

Favourable US regulatory changes, such as the GENIUS Act and evolving policies from housing authorities, support this shift. Aaron Kirman, Christie’s Southern California CEO, predicts crypto may make up over a third of US home sales within five years, attracting wealthy digital asset investors.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Google launches AI feature to reshape how search results appear

Google has introduced a new experimental feature named Web Guide, aimed at reorganising search results by using AI to group information based on the query’s different aspects.

Available through Search Labs, the tool helps users explore topics in a more structured way instead of relying on the standard, linear results page.

Powered by Google’s Gemini AI, Web Guide works particularly well for open-ended or complex queries. For example, searches such as ‘how to solo travel in Japan’ would return results neatly arranged into guides, safety advice, or personal experiences instead of a simple list.

The feature handles multi-sentence questions, offering relevant answers broken into themed sections.

Users who opt in can access Web Guide via the Web tab and toggle it off without exiting the entire experiment. While it works only on that tab, Google plans to expand it to the broader ‘All’ tab in time.

The move follows Google’s broader push to incorporate Gemini into tools like AI Mode, Flow, and other experimental products.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Microsoft replaces the blue screen of death with a sleek black version in Windows 11

Microsoft has officially removed the infamous Blue Screen of Death (BSOD) from Windows 11 and replaced it with a sleeker, black version.

As part of the update KB5062660, the Black Screen of Death now appears briefly—around two seconds—before a restart, showing only a short error message without the sad face or QR code that became symbolic of Windows crashes.

The update, which brings systems to Build 26100.4770, is optional and must be installed manually through Windows Update or the Microsoft Update Catalogue.

It is available for both x64 and arm64 platforms. Microsoft plans to roll out the update more broadly in August 2025 as part of its Windows 11 24H2 feature preview.

In addition to the screen change, the update introduces ‘Recall’ for EU users, a tool designed to operate locally and allow users to block or turn off tracking across apps and websites. The feature aims to comply with European privacy rules while enhancing user control.

Also included is Quick Machine Recovery, which can identify and fix system-wide failures using the Windows Recovery Environment. If a device becomes unbootable, it can download a repair patch automatically to restore functionality instead of requiring manual intervention.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US stablecoin supply jumps $4 billion after new crypto laws

The recently passed GENIUS Act has sparked a $4 billion increase in the stablecoin market within a week, pushing its total value beyond $264 billion. The legislation offers clear federal rules, encouraging banks, asset managers, and crypto firms to launch new fiat-backed stablecoins.

Under the GENIUS Act, issuers must hold full reserves, undergo audits, and obtain licences to avoid SEC enforcement. Tether’s USDT and Circle’s USDC dominate this space with a combined market cap of over $227 billion.

Crypto-backed and algorithmic stablecoins remain less prominent and face distinct regulatory challenges.

Institutional involvement is rising quickly. Anchorage Digital teamed with Ethena Labs to launch a stablecoin platform, while WisdomTree introduced a regulated dollar-backed stablecoin.

Major banks, including Bank of America, JPMorgan, and Citigroup, are also preparing to enter the market, signalling broader traditional finance engagement.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Ethereum ETF by BlackRock crosses $10 billion

The iShares Ethereum Trust (ETHA), managed by BlackRock, has surpassed $10 billion in assets under management just over a year after launch. It now ranks as the third-fastest ETF in US history to reach the milestone, trailing only two Bitcoin-focused funds.

According to Bloomberg’s Eric Balchunas, ETHA doubled from $5 billion to $10 billion in just 10 days. July brought a notable surge in inflows, with Ethereum ETFs outperforming Bitcoin ETFs on several occasions.

So far, monthly Ethereum ETF inflows have reached $4.7 billion, with ETHA leading in volume and growth.

The rapid growth has been driven by increasing institutional demand and investor confidence in Ethereum’s long-term prospects. BlackRock filed for ETHA in late 2023 and selected Coinbase Prime as custodian.

The fund tracks Ether’s market price, charges a 0.25% fee, and may soon introduce staking following favourable SEC guidance.

Analysts say ETH’s proof-of-stake model and its role in decentralised finance have made it increasingly attractive. While Bitcoin funds still dominate total assets, Ethereum ETFs are growing faster due to more substantial DeFi exposure and the potential for staking rewards.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Network failure hits EE, BT and affects other UK providers

Thousands of EE and BT customers across the UK encountered widespread network failures on 24 July, primarily affecting voice services.

The outage, lasting over 24 hours, disrupted mobile and landline calls. Over 2,600 EE users reported issues with Downdetector at peak volume around 2:15 p.m. BST. Despite repair efforts, residual outages were still being logged the following day.

Although Vodafone and Three initially confirmed their networks were stable, users who recently switched carriers or ported numbers from EE experienced failures when making or receiving calls. However, this suggests cross-network routing issues burdened by EE’s technical fault.

Emergency services were briefly impacted; some users could not reach 999, though voice functionality has resumed. BT and EE apologised and said they were working urgently to restore reliable service.

Given statutory obligations around service resilience, Ofcom has opened inquiries into scale and causes. Affected MVNO operators using EE infrastructure, like 1pMobile, reported customer disruptions.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta boosts teen safety as it removes hundreds of thousands of harmful accounts

Meta has rolled out new safety tools to protect teenagers on Instagram and Facebook, including alerts about suspicious messages and a one-tap option to block or report harmful accounts.

The company said it is increasing efforts to prevent inappropriate contact from adults and has removed over 635,000 accounts that sexualised or targeted children under 13.

Of those accounts, 135,000 were caught posting sexualised comments, while another 500,000 were flagged for inappropriate interactions.

Meta said teen users blocked over one million accounts and reported another million after receiving in-app warnings encouraging them to stay cautious in private messages.

The company also uses AI to detect users lying about their age on Instagram. If flagged, those accounts are automatically converted to teen accounts with stronger privacy settings and messaging restrictions. Since 2024, all teen accounts are set to private by default.

Meta’s move comes as it faces mounting legal pressure from dozens of US states accusing the company of contributing to the youth mental health crisis by designing addictive features on Instagram and Facebook. Critics argue that more must be done to ensure safety instead of relying on user action alone.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI and quantum tech reshape global business

AI and quantum computing are reshaping global industries as investment surges and innovation accelerates across sectors like finance, healthcare and logistics. Microsoft and Amazon are driving a major shift in AI infrastructure, transforming cloud services into profitable platforms.

Quantum computing is moving beyond theory, with real-world applications emerging in pharmaceuticals and e-commerce. Google’s development of quantum-inspired algorithms for virtual shopping and faster analytics demonstrates its potential to revolutionise decision-making.

Sustainability is also gaining ground, with companies adopting AI-powered solutions for renewable energy and eco-friendly manufacturing. At the same time, digital banks are integrating AI to challenge legacy finance systems, offering personalised, accessible services.

Despite rapid progress, ethical concerns and regulatory challenges are mounting. Data privacy, AI bias, and antitrust issues highlight the need for responsible innovation, with industry leaders urged to balance risk and growth for long-term societal benefit.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI reshaping the US labour market

AI is often seen as a job destroyer, but it’s also emerging as a significant source of new employment, according to a new Brookings report. The number of job postings mentioning AI has more than doubled in the past year, with demand continuing to surge across various industries and regions.

Over the past 15 years, AI-related job listings have grown nearly 29% annually, far outpacing the 11% growth rate of overall job postings in the broader economy.

Brookings based its findings on data from Lightcast, a labour market analytics firm, and noted rising demand for AI skills across sectors, including manufacturing. According to the US Census Bureau’s Business Trends Survey, the share of manufacturers using AI has jumped from 4% in early 2023 to 9% by mid-2025.

Yet, AI jobs still form a small part of the market. Goldman Sachs predicts widespread AI adoption will peak in the early 2030s, with a slower near-term influence on jobs. ‘AI is visible in the micro labour market data, but it doesn’t dominate broader job dynamics,’ said Joseph Briggs, an economist at Goldman Sachs.

Roles range from AI engineers and data scientists to consultants and marketers learning to integrate AI into business operations responsibly and ethically. In 2025, over 80,000 job postings cited generative AI skills—up from fewer than 4,000 in 2010, Brookings reported, indicating explosive long-term growth.

Job openings involving ‘responsible AI’—those addressing ethical AI use in business and society—are also rising, according to data from Indeed and Lightcast. ‘As AI evolves, so does what counts as an AI job,’ said Cory Stahle of the Indeed Hiring Lab, noting that definitions shift with new business applications.

AI skills carry financial value, too. Lightcast found that jobs requiring AI expertise offer an average salary premium of $18,000, or 28% more annually. Unsurprisingly, tech hubs like Silicon Valley and Seattle dominate AI hiring, but job growth spreads to regions like the Sunbelt and the East Coast.

Mark Muro of Brookings noted that universities play a key role in AI job growth across new regions by fuelling local innovation. AI is also entering non-tech fields such as finance, human resources, and marketing, with more than half of AI-related postings now being outside IT roles.

Muro expects more widespread AI adoption in the next few years, as employers gain clarity on its value, limitations and potential for productivity. ‘There’s broad consensus that AI boosts productivity and economic competitiveness,’ he said. ‘It energises regional leaders and businesses to act more quickly.’

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!