Economic Archives | Page 392 of 708 | Digital Watch Observatory

Trump Media may launch a crypto wallet and token

Trump Media & Technology Group is considering launching a crypto token and digital wallet to complement its Truth+ streaming service.

The new asset would be introduced as part of a broader rewards programme. It could be used to pay for subscriptions before expanding to other offerings within the company’s ecosystem.

Other components of the ‘Truth ecosphere’ include Truth Social, a social network favoured by Donald Trump, and Truth.Fi, a recently launched fintech platform. Truth.Fi is developing investment products with an ‘America-First’ theme.

It aims to combine cryptocurrencies and traditional assets in customised ETFs by the end of the year.

Despite declining prices of Trump-affiliated me me coins, including those linked to Donald and Melania Trump, Trump Media remains committed to crypto.

The firm has already pledged up to $250 million of its cash reserves to Bitcoin and similar assets. Its annual meeting is scheduled for Wednesday.

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Meta unveils personalised AI assistant

Meta Platforms has launched a dedicated AI assistant app powered by its open-source Llama 4 language model, stepping up efforts to compete with leading chatbot providers like OpenAI.

Unlike typical AI chat tools, Meta AI integrates personal data from the company’s popular platforms, including Facebook, Instagram, WhatsApp and Messenger, to deliver more tailored responses.

According to Meta, the assistant can remember details users choose to share and adapt its replies based on individual preferences and behaviours across its services.

The personalised functionality is currently limited to users in the United States and Can a da. The launch coincides with Meta’s first LlamaCon event, held on 29 April at its California headquarters.

CEO Mark Zuckerberg has committed up to $65 billion in capital expenditure to strengthen the company’s AI infrastructure. He believes Meta AI will become the world’s most widely-used assistant by 2025, potentially reaching more than 1 billion users.

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Duolingo CEO defends AI plan amid user outrage

Duolingo has come under fire after CEO Luis von Ahn announced the company is transitioning to an ‘AI-first’ model, with plans to replace certain human roles with AI.

In a lengthy email and LinkedIn post, the CEO argued that AI is essential to scale content creation and build new features like video calls. He stated that relying on manual processes is unsustainable and that embracing AI now will help Duolingo stay competitive and better deliver on its educational mission.

The company’s plan includes phasing out contractors whose work can be automated and using AI proficiency as a factor in hiring and performance evaluations. Von Ahn acknowledged the changes would require rethinking workflows and, in some cases, rebuilding systems from scratch.

While he reassured employees that Du o lingo still values its workforce and wants them focused on creative and meaningful tasks, the announcement has sparked mixed reactions online.

Some users welcomed the bold move, seeing it as a way to push the boundaries of AI and education. Others, however, expressed concern about job losses and the company’s shifting priorities.

Several users threatened to cancel subscriptions or uninstall the app, arguing that prioritising AI over people contradicts Duolingo’s claims of caring about employees.

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Beijing launches blockchain plan to boost industry integration

Beijing has unveiled a two-year plan aimed at promoting blockchain development and adoption across various sectors. The initiative, announced on 29 April, is supported by local bodies like the Beijing Municipal Science and Technology Commission and the Cyberspace Administration Office.

The project will span from 2023 to 2027, with a focus on integrating blockchain into infrastructure and industries.

The plan recognises blockchain as essential for industrial digitalisation and digital infrastructure. Among its objectives is enhancing the value extraction from digital assets, potentially hinting at crypto mining opportunities.

The initiative also focuses on advancements in cryptography, confidential computing, and distributed systems. It includes developing blockchain infrastructure, such as national hubs and digital identity platforms.

Key industries identified for blockchain application include healthcare, education, AI models, financial services, and transportation.

By 2027, the project is set to introduce blockchain chips and a trusted identity system with a user base of over 100 million.

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Trump administration eyes overhaul of Biden-era AI chip export rules

The Trump administration is reviewing a Biden-era rule that restricts global access to US-made advanced AI chips, with discussions underway to eliminate the current tiered system that governs chip exports, according to sources familiar with the matter.

The existing rule, known as the Framework for Artificial Intelligence Diffusion, was introduced by the US Department of Commerce in January and is set to take effect on 15 May.

It divides the world into three groups: trusted allies (like the EU and Taiwan) with unlimited access, Tier 2 countries with chip quotas, and restricted countries such as China, Russia, Iran and North Korea.

Officials are considering replacing this structure with a global licensing regime based on government-to-government agreements—aligning with Donald Trump’s broader trade strategy of negotiating bilateral deals and using US-made chips as leverage.

Other possible changes include tightening export thresholds: under current rules, orders under the equivalent of 1,700 Nvidia H100 chips only require notification, not a licence. The new proposal could reduce that threshold to around 500 chips.

Supporters of the change argue it would increase US bargaining power and simplify enforcement. Critics, however, warn that scrapping the tier system may complicate compliance and drive countries toward Chinese chip alternatives.

Tech firms such as Oracle and Nvidia, along with several US lawmakers, have criticised the current framework, saying it risks harming American competitiveness and pushing international buyers toward cheaper, unregulated Chinese substitutes.

The Commerce Department declined to comment.

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Bunq bank adds crypto investing to its app

Dutch digital bank Bunq has launched a cryptocurrency trading feature, allowing users to invest in over 300 digital assets, including Bitcoin, Ethereum and Solana.

The service, called Bunq Crypto, is now live in six European countries, with further expansion planned.

CEO Ali Niknam said the decision was driven by customer demand and a more supportive regulatory environment. The feature is powered by Kraken, one of the largest crypto exchanges globally.

Bunq plans to expand the crypto service across the European Economic Area, as well as to the UK and the US. The move reflects a wider trend among financial firms to offer all-in-one platforms that integrate banking, saving and investing.

According to Bunq’s research, 65% of Europeans want a single app to manage traditional and digital finance.

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Tariff tensions flare over Amazon price display

Amazon has dismissed reports that it would begin displaying added tariff charges next to product prices on its website, clarifying that no such move is planned. The speculation arose after Punchbowl News reported Amazon would list import costs alongside prices, citing an anonymous source.

The rumour prompted a sharp rebuke from the Trump administration, which labelled the supposed plan a ‘hostile and political act’ before the company issued its denial.

According to Amazon, only its budget storefront, Haul, briefly explored the idea internally, but the proposal was never approved. A company spokesperson confirmed there are no plans to implement tariff disclosures on product listings.

President Donald Trump reportedly called Amazon founder Jeff Bezos to complain about the matter, but later praised him publicly for resolving what he described as a misunderstanding.

Tariffs introduced by the Trump administration have caused growing concern among businesses, including Amazon competitors Temu and Shein, which recently announced price increases due to rising import charges.

Both companies have now adjusted how they communicate these costs to customers. Economists warn that the wider effects of the trade war could push consumer prices higher and worsen inflation.

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Bitcoin gains slightly as markets await Trump’s next move

Bitcoin ticked up slightly on Tuesday as markets reacted to hints of trade progress from President Trump’s cabinet ahead of his rally in Michigan. Bitcoin climbed 0.5% to around $95,400, while Ethereum and Solana posted stronger gains of 3% and 2%, respectively.

The president is set to speak in Macomb County, Michigan, celebrating his administration’s first 100 days. Analysts say the event could impact crypto markets if Trump reinforces a pro-Bitcoin stance or hints at institutional integration of digital assets.

Trade optimism also played a role. US Commerce Secretary Howard Lutnick said a new deal had been reached with one country impacted by Trump’s tariffs, although full details remain under wraps. Trump echoed this optimism, noting progress in talks with India.

Markets are also watching for inflation updates, with the Federal Reserve’s preferred measure due Wednesday. Economists warn that Trump’s tariffs could fuel inflation and dampen growth, factors likely to influence crypto alongside broader risk assets.

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Bank of Italy warns about crypto risks and US policy influence

The Bank of Italy has once again expressed concerns over the growing influence of crypto in traditional finance. In its latest Financial Stability Report, the central bank warned that the global integration of digital assets poses a significant risk to financial stability.

For years, central banks have raised alarms about the systemic threats crypto presents. These include volatility, regulatory gaps, and the potential for contagion across markets. However, recent political changes have intensified these worries.

The bank noted that the election of Donald Trump and his administration’s pro-crypto policies have led to significant price increases in digital assets. The bank cautioned that closer integration of crypto with traditional finance could create vulnerabilities in global markets.

As of March, the global crypto market was valued at $2.75 trillion. Bitcoin accounted for over 60% of this, with 30% coming from other unbacked crypto assets. Stablecoins, linked to traditional currencies, made up only 9%.

The Bank of Italy has also raised concerns about the growing ties between government, finance, and crypto. It specifically highlighted the use of Bitcoin in corporate treasuries and ETFs, warning of potential conflicts of interest and governance gaps.

The Bank warned about the influence of dollar-backed stablecoins like Tether’s USDT and Circle’s USDC. A widespread run on these could destabilise global markets by triggering a fire sale of US government bonds.

Despite the Bank of Italy’s cautious stance, some Italian banks are embracing crypto. Intesa Sanpaol o, Italy’s largest bank, purchased bitcoins and underwrote the country’s first blockchain bond.

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Telegram bonds go blockchain with $500M tokenised fund

Libre and the TON Foundation have launched a $500 million tokenised fund, the Telegram Bond Fund, to bring Telegram’s $2.4 billion in corporate debt onto the blockchain. Available on The Open Network (TON), the fund gives institutional and accredited investors direct access to Telegram’s bonds.

The fund also allows participation in future bond offerings and offers collateral options within the TON ecosystem. The launch is one of the largest institutional moves in the Real-World Asset (RWA) space, which is set to exceed $50 billion this year.

Libre, a regulated real-world asset platform, manages the fund with infrastructure that supports fiat and stablecoin subscriptions. Investors will use TON-native wallets to handle assets. The initiative bridges traditional finance with blockchain technology.

The move reflects growing interest in tokenised RWAs. Major financial players like BlackRock and Circle are tokenising assets such as US Treasuries and real estate. The value locked in RWA protocols has doubled in the past year, highlighting the demand for blockchain integration in traditional finance.

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