Economic Archives | Page 340 of 707 | Digital Watch Observatory

Senate passes the GENIUS Act to regulate stablecoins

The US Senate has passed the GENIUS Act, the first bill to establish a federal framework for regulating dollar-backed stablecoins. Passed with cross-party support in a 68–30 vote, the legislation marks a major win for the crypto industry, which has long sought clearer oversight.

The bill still requires approval from the House and a signature from President Trump. It would mandate that stablecoin issuers hold reserves in cash or US Treasuries, undergo audits, and disclose their holdings.

While it bans members of Congress and their families from profiting, the same restriction does not apply to Trump and his family — a point of contention among Democrats.

Circle and other crypto firms welcomed the move. Meanwhile, major players like Bank of America, Amazon, and Walmart are exploring their stablecoin offerings. Trump has also backed a new coin, USD1, through his startup World Liberty Financial.

If the legislation becomes law, it could transform payments by encouraging new issuers, reducing reliance on traditional card networks, and expanding global access to digital dollars. US Treasury Secretary Scott Bessent believes the market could surpass $2 trillion by 2028.

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Meta offers $100M bonuses to poach OpenAI talent but Altman defends mission-driven culture

Meta has reportedly attempted to lure top talent from OpenAI with signing bonuses exceeding $100 million, according to OpenAI’s CEO Sam Altman.

Speaking on a podcast hosted by his brother, Jack Altman, he revealed that Meta has offered extremely high compensation to key OpenAI staff, yet none have accepted the offers.

Meta CEO Mark Zuckerberg is said to be directly involved in recruiting for a new ‘superintelligence’ team as part of the latest AI push.

The tech giant recently announced a $14.3 billion investment in Scale AI and brought Scale’s CEO, Alexandr Wang, on board. Altman believes Meta sees ChatGPT not only as competition for Google but as a potential rival to Facebook regarding user attention.

Altman questioned whether such high-compensation strategies foster the right environment, suggesting that culture cannot be built on upfront financial incentives alone.

He stressed that OpenAI prefers aligning rewards with its mission instead of offering massive pay packets. In his view, sustainable innovation stems from purpose, not payouts.

While recognising Meta’s persistence in the AI race, Altman suggested that the company will likely try again if the current effort fails. He highlighted a cultural difference, saying OpenAI has built a team focused on consistent innovation — something he believes Meta still struggles to understand.

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OpenAI brings DALL-E image creation to WhatsApp users worldwide

OpenAI has officially launched image creation capabilities for WhatsApp users, expanding access to its AI visual tools via the verified number +1-800-ChatGPT. Using natural language prompts, the feature enables users to generate or edit images directly within their chats.

Previously limited to the web and mobile versions of ChatGPT, the image generation tool—powered by DALL-E—is now available globally on WhatsApp, free of charge. OpenAI announced the rollout via X, encouraging users to connect their accounts for enhanced functionality.

To get started, users should save +1-800-ChatGPT (+1-800-242-8478) to their contacts, send ‘Hi’ via WhatsApp, and follow the instructions to link their OpenAI account.

Once verified, they can prompt the AI with creative requests such as ‘design a futuristic skyline’ or ‘show a dog surfing on Mars’ and receive bespoke visuals in return.

The move further integrates generative AI into everyday messaging, making powerful image-creation tools more accessible to a broad user base.

Meanwhile, WhatsApp is preparing to introduce in-app advertising. With over two billion active users, Meta plans to monetise the platform more aggressively—signalling a notable shift in WhatsApp’s strategy.

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Deepfake technology fuels new harassment risks

A growing threat of AI-generated media is reshaping workplace harassment, with deepfakes used to impersonate colleagues and circulate fabricated explicit content in the US. Recent studies found that almost all deepfakes were sexually explicit by 2023, often targeting women.

Organisations risk liability under existing laws if deepfake incidents create hostile work environments. New legislation like the TAKE IT DOWN Act and Florida’s Brooke’s Law now mandates rapid removal of non-consensual intimate imagery.

Employers are also bracing for proposed rules requiring strict authentication of AI-generated evidence in legal proceedings. Industry experts advise an urgent review of harassment and acceptable use policies, clear incident response plans and targeted training for HR, legal and IT teams.

Protective measures include auditing insurance coverage for synthetic media claims and staying abreast of evolving state and federal regulations. Forward-looking employers already embed deepfake awareness into their harassment prevention and cybersecurity training to safeguard workplace dignity.

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Microsoft begins password deletion in six weeks

Microsoft has announced that it will begin deleting saved passwords from its Authenticator app in six weeks, urging users to shift to more secure passkeys. The company confirmed that by August 2025, saved passwords will no longer be accessible, marking a decisive move away from traditional logins.

Users can transition their credentials to Microsoft Edge or adopt passkeys, which are less vulnerable to phishing and breaches. Despite growing risks, Google is making similar recommendations as most users still rely on passwords or outdated two-factor authentication.

The changes reflect a broader industry push to phase out passwords entirely, citing their inherent insecurity and the surge in credential-based attacks. Microsoft also warned that attackers are intensifying efforts to exploit passwords before their relevance fades.

Authenticator will continue supporting passkeys, but users must keep it enabled as their passkey provider. Microsoft’s message is clear: act now to secure your accounts before password support disappears.

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Meta AI adds pop-up warning after users share sensitive info

Meta has introduced a new pop-up in its Meta AI app, alerting users that any prompts they share may be made public. While AI chat interactions are rarely private by design, many users appeared unaware that their conversations could be published for others to see.

The Discovery feed in the Meta AI app had previously featured conversations that included intimate details—such as break-up confessions, attempts at self-diagnosis, and private photo edits.

According to multiple reports last week, these were often shared unknowingly by users who may not have realised the implications of the app’s sharing functions. Mashable confirmed this by finding such examples directly in the feed.

Now, when a user taps the ‘Share’ button on a Meta AI conversation, a new warning appears: ‘Prompts you post are public and visible to everyone. Your prompts may be suggested by Meta on other Meta apps. Avoid sharing personal or sensitive information.’ A ‘Post to feed’ button then appears below.

Although the sharing step has always required users to confirm, Business Insider reports that the feature wasn’t clearly explained—leading some users to publish their conversations unintentionally. The new alert aims to clarify that process.

As of this week, Meta AI’s Discovery feed features mostly AI-generated images and more generic prompts, often from official Meta accounts. For users concerned about privacy, there is an option in the app’s settings to opt out of the Discovery feed altogether.

Still, experts advise against entering personal or sensitive information into AI chatbots, including Meta AI. Adjusting privacy settings and avoiding the ‘Share’ feature are the best ways to protect your data.

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Plumbing still safe as AI replaces office jobs, says AI pioneer

Nobel Prize-winning scientist Geoffrey Hinton, often called the ‘Godfather of AI,’ has warned that many intellectual jobs are at risk of being replaced by AI—while manual trades like plumbing may remain safe for years to come.

Speaking on the Diary of a CEO podcast, Hinton predicted that AI will eventually surpass human capabilities across most fields, but said it will take far longer to master physical skills. ‘A good bet would be to be a plumber,’ he noted, citing the complexity of physical manipulation as a barrier for AI.

Hinton, known for his pioneering work on neural networks, said ‘mundane intellectual labour’ would be among the first to go. ‘AI is just going to replace everybody,’ he said, naming paralegals and call centre workers as particularly vulnerable.

He added that while highly skilled roles or those in sectors with overwhelming demand—like healthcare—may endure, most jobs are unlikely to escape the wave of disruption. ‘Most jobs, I think, are not like that,’ he said, forecasting widespread upheaval in the labour market.

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Google warns against weak passwords amid £12bn scams

Gmail users are being urged to upgrade their security as online scams continue to rise sharply, with cyber criminals stealing over £12 billion in the past year alone. Google is warning that simple passwords leave people vulnerable to phishing and account takeovers.

To combat the threat, users are encouraged to switch to passkeys or use ‘Sign in with Google’, both of which offer stronger protections through fingerprint, face ID or PIN verification. Over 60% of Baby Boomers and Gen X users still rely on weak passwords, increasing their exposure to attacks.

Despite the availability of secure alternatives, only 30% of users reportedly use them daily. Gen Z is leading the shift by adopting newer tools, bypassing outdated security habits altogether.

Google recommends adding 2-Step Verification for those unwilling to leave passwords behind. With scams growing more sophisticated, extra security measures are no longer optional, they are essential.

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JPMorgan moves deeper into crypto with new JPMD trademark

JPMorgan Chase has filed a trademark application in the US for ‘JPMD’, a name set to cover a wide range of cryptocurrency-related financial services. The new trademark covers digital asset trading, payments, transfers, custody, brokerage, and real-time token transactions.

The move indicates the banking giant may be preparing to deepen its involvement in blockchain-powered financial infrastructure.

The filing follows recent developments in JPMorgan’s blockchain division, Kinexys. It successfully tested a transaction involving tokenised US Treasuries (OUSG) via Ondo Finance, with Chainlink’s CRE facilitating asset movement.

Despite CEO Jamie Dimon’s ongoing scepticism toward Bitcoin, the bank appears to be adapting to the digital asset economy. Dimon stated he would allow clients to access Bitcoin, though JPMorgan would not provide custody services for the asset.

With BTC currently hovering around $107,000, the bank’s strategic branding and blockchain experimentation suggest a growing, if cautious, embrace of crypto services in traditional finance.

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Brazil lawmaker pushes to scrap crypto tax on Bitcoin holders

Brazilian lawmaker Eros Biondini has introduced a draft bill aiming to eliminate cryptocurrency taxes, especially for those holding Bitcoin as a long-term store of value. The proposal seeks to repeal clauses in the tax code and a 2023 law that currently require income tax on crypto profits.

The bill will be reviewed by a committee in the Chamber of Deputies before potentially moving to the Senate and the President, who both hold veto powers.

Biondini argues that new taxes on financial transactions, including foreign exchange and insurance, are poorly timed amid economic fragility. He highlights that Brazil’s tax burden reached its highest in 15 years, amounting to 32.32% of GDP in 2024.

The lawmaker criticised the government for opposing crypto adoption, claiming that existing and proposed tax laws unfairly penalise people seeking safe, sovereign stores of value.

Previously, Biondini also pushed for formal recognition of Bitcoin as a strategic store of value in Brazil. His earlier proposal would exempt Bitcoin holders from tax and confirm their right to self-custody without intermediaries.

In November last year, he unveiled a plan to allocate up to 5% of Brazil’s $372 billion international reserve fund into Bitcoin, signalling a bold approach to national economic sovereignty.

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