Economic Archives | Page 405 of 708 | Digital Watch Observatory

Russian official calls for domestic stablecoin alternatives to USDT

A senior Russian finance official has called for domestic stablecoins after EU sanctions led to the freeze of over 2.5 billion roubles held by Garantex. It raised concerns about reliance on foreign-issued assets.

Osman Kabaloev suggested Russia explore creating its stablecoins, possibly pegged to local currencies, as an alternative to USDT. Stablecoins are widely used in the cryptocurrency space for their stability, particularly in regions facing financial sanctions or restrictions.

In Russia, USDT has been used by businesses for international transactions. The trend has grown as access to global payment systems has become more restricted due to Western sanctions.

While Russia has allowed limited experimental use of cryptocurrency for cross-border payments, domestic use of crypto remains restricted. The call for a homegrown stablecoin reflects Russia’s growing concerns over digital asset security and sovereignty.

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xAI pushes Grok forward with memory update

Elon Musk’s AI venture, xAI, has introduced a new ‘memory’ feature for its Grok chatbot in a bid to compete more closely with established rivals like ChatGPT and Google’s Gemini.

The update allows Grok to remember details from past conversations, enabling it to provide more personalised responses when asked for advice or recommendations, instead of offering generic answers.

Unlike before, Grok can now ‘learn’ a user’s preferences over time, provided it’s used frequently enough. The move mirrors similar features from competitors, with ChatGPT already referencing full chat histories and Gemini using persistent memory to shape its replies.

According to xAI, the memory is fully transparent. Users can view what Grok has remembered and choose to delete specific entries at any time.

The memory function is currently available in beta on Grok’s website and mobile apps, although not yet accessible to users in the EU or UK.

Instead of being automatically enabled, it can be turned off in the settings menu under Data Controls. Deleting individual memories is also possible via the web chat interface, with Android support expected shortly.

xAI has confirmed it is working on adding memory support to Grok’s version on X. However, this expansion aims to deepen the bot’s integration with users’ digital lives instead of limiting the experience to one platform.

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Quantum spin breakthrough at room temperature

South Korean researchers have discovered a way to generate much stronger spin currents at room temperature, potentially transforming the future of electronics.

By using a mechanism called longitudinal spin pumping and a special iron-rhodium material, the team showed that quantum magnetisation dynamics, once thought to only occur at extremely low temperatures, can take place in everyday conditions.

These currents were found to be 10 times stronger than those created through traditional methods, offering a major boost for low-power, high-performance devices.

Instead of relying on the movement of electric charge, spintronics makes use of the electron’s spin, which reduces energy loss and heat generation. This advancement could be particularly beneficial for Magnetoresistive Random Access Memory (MRAM), a type of memory that depends on spin currents to function.

Researchers believe their findings may significantly cut power consumption in MRAM, which is already being explored by companies like Samsung for next-generation AI computing systems.

The study, carried out by teams at KAIST and Sogang University, used a combination of ultrafast measurement experiments and theoretical analysis to validate the discovery. Experts say the results could lead to a new era of energy-efficient memory and processor technologies.

Instead of stopping here, the researchers now plan to develop novel spintronic device architectures and explore other quantum-based mechanisms to push the limits of what modern electronics can achieve.

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Microsoft unveils powerful lightweight AI model for CPUs

Microsoft researchers have introduced the largest 1-bit AI model to date, called BitNet b1.58 2B4T, designed to run efficiently on standard CPUs instead of relying on GPUs. This ‘bitnet’ model, now openly available under the MIT license, can even operate on Apple’s M2 chips.

Bitnets use extreme weight quantisation, storing only -1, 0, or 1 as values, making them far more memory- and compute-efficient than most conventional models.

With 2 billion parameters and trained on 4 trillion tokens, roughly the equivalent of 33 million books, BitNet b1.58 2B4T outperforms several similarly sized models in key benchmarks.

Microsoft claims it beats Meta’s Llama 3.2 1B, Google’s Gemma 3 1B, and Alibaba’s Qwen 2.5 1.5B on tasks like grade-school maths and physical reasoning. It also runs up to twice as fast while using significantly less memory, offering a potential edge for lower-end or energy-constrained devices.

The main limitation lies in its dependence on Microsoft’s custom bitnet.cpp framework, which supports only select hardware and does not yet work with GPUs.

Instead of being broadly compatible with existing AI systems, BitNet’s performance depends on a narrower infrastructure, a hurdle that may limit adoption, despite its promise for lightweight AI deployment.

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Panama City introduces cryptocurrency payments for public services

Panama City has announced that it will accept Bitcoin, Ethereum, and stablecoins like USDC and Tether as payment for public services. The decision marks a significant step forward in the country’s growing acceptance of cryptocurrencies. Locals will be able to use these digital assets to pay for taxes, permits, fees, and tickets.

The city’s council approved the proposal this week, and Mayor Mayer Mizrachi confirmed the move on social media. Panama City will partner with banks to facilitate the conversion of cryptocurrencies into fiat currency. It will make payments easier and more accessible for residents.

While Panama City’s stance on crypto has evolved, lawmakers have not always been in favour of digital assets. In 2022, President Laurentino Cortizo vetoed a bill to regulate Bitcoin and decentralised organisations, citing the need for better alignment with Panama’s financial system.

However, Panama’s move mirrors the increasing global adoption of cryptocurrencies. Other nations like El Salvador and the Central African Republic have already recognised Bitcoin as legal tender. Some Swiss regions have also started accepting digital currencies for public services.

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New Apple AI model uses private email comparisons

Apple has outlined a new approach to improving its AI features by privately analysing user data with the help of synthetic data. The move follows criticism of the company’s AI products, especially notification summaries, which have underperformed compared to competitors.

The new method relies on ‘differential privacy,’ where Apple generates synthetic messages that resemble real user data without containing any actual content.

These messages are used to create embeddings—abstract representations of message characteristics—which are then compared with real emails on user’ devices that have opted in to share analytics.

Devices send back signals indicating which synthetic data most closely matches real content, without sharing the actual messages with Apple.

Apple said the technique is already being used to improve its Genmoji models and will soon be applied to other features, including Image Playground, Image Wand, Memories Creation, Writing Tools, and Visual Intelligence.

The company also confirmed plans to improve email summaries using the same privacy-focused method, aiming to refine its AI tools while maintaining a strong commitment to user data protection.

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Japan tells Google to stop Android search dominance

Japanese regulators have accused Google of breaching the country’s anti-monopoly laws by restricting competition through the pre-installation of its search engine on Android smartphones.

The Japan Fair Trade Commission (JFTC) issued a cease and desist order on Tuesday, directing the US tech giant to halt the practice.

Google Japan called the move ‘regrettable’ and emphasised its long-standing investment in Japan to support innovation. The company has not yet indicated whether it will appeal the ruling.

The JFTC’s investigation began in 2023, with input from overseas regulators handling similar concerns in the United States and Europe.

This marks the first time the JFTC has taken such action against a major global technology firm. It follows global scrutiny of Google’s dominance, including a US court ruling last year that found Google had unfairly used its market power to suppress rivals.

European authorities have also raised similar concerns, accusing the company of monopolistic behaviour.

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Europe struggles to explain quantum to its citizens

Most Europeans remain unclear about quantum technology, despite increasing attention from EU leaders. A new survey, released on World Quantum Day, reveals that while 78 per cent of adults in France and Germany are aware of quantum, only a third truly understand what it is.

Nearly half admitted they had heard of the term but didn’t know what it means.

Quantum science studies the smallest building blocks of the universe, particles like electrons and atoms, that behave in ways classical physics can’t explain. Though invisible even to standard microscopes, they already power technologies such as GPS, MRI scanners and semiconductors.

Quantum tools could lead to breakthroughs in healthcare, cybersecurity, and climate change, by enabling ultra-precise imaging, improved encryption, and advanced environmental monitoring.

The survey showed that 47 per cent of respondents expect quantum to positively impact their country within five years, with many hopeful about its role in areas like energy, medicine and fraud prevention.

For example, quantum computers might help simulate complex molecules for drug development, while quantum encryption could secure communications better than current systems.

The EU has committed to developing a European quantum chip and is exploring a potential Quantum Act, backed by €65 million in funding under the EU Chips Act. The UK has pledged £121 million for quantum initiatives.

However, Europe still trails behind China and the US, mainly due to limited private investment and slower deployment. Former ECB president Mario Draghi warned that Europe must build a globally competitive quantum ecosystem instead of falling behind further.

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Seoul unveils $4.9 billion chip support package

South Korea has announced a $4.9 billion boost to its semiconductor industry amid concerns over possible US tariffs targeting key export sectors.

The government plans to increase its total chip support package from $18.2 billion to $23.1 billion, in what officials describe as an urgent effort to shield the economy from intensifying global trade tensions.

President Donald Trump’s threat of a 25 percent tariff on South Korean goods has unsettled markets and raised fears for the country’s vital semiconductor and automotive industries.

Although the United States tariffs were temporarily suspended for 90 days, South Korea’s finance minister Choi Sang-mok said that duties on sectors such as chips and pharmaceuticals still remain a possibility. He urged swift action during what he called a ‘crucial window’ to keep South Korea competitive on the global market.

The expanded investment will fund infrastructure, talent development, and support for new chip clusters currently under construction. The measure is part of a broader $8.4 billion revised supplementary budget that requires approval from the National Assembly.

In addition to the chip support, Seoul has also rolled out a $2 billion emergency package for carmakers facing potential US tariffs, as the country works to navigate growing uncertainty in global trade.

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MITRE’s CVE program faces funding expiry, raising cybersecurity concerns

A cornerstone of the global cybersecurity ecosystem is facing an uncertain future. US government funding for MITRE Corporation to operate and maintain the Common Vulnerabilities and Exposures (CVE) program is set to expire, an unprecedented development that could significantly disrupt how security flaws are identified, tracked, and mitigated worldwide.

Launched in 1999, the CVE program has become the de facto international standard for cataloging publicly known software vulnerabilities. Managed by MITRE under sponsorship from the Department of Homeland Security (DHS) and the Cybersecurity and Infrastructure Security Agency (CISA), the program has published over 274,000 CVE records to date.

MITRE has warned that the lapse in funding will not only halt its ability to continue developing and modernizing the CVE system but could also impact related initiatives such as the Common Weakness Enumeration (CWE). These tools are essential for vulnerability classification, secure coding practices, and prioritisation of cybersecurity risks.

While Barsoum noted that the US government is working to find a resolution, the looming gap has already prompted independent action. Cybersecurity firm VulnCheck, which acts as a CVE Numbering Authority (CNA), has preemptively reserved 1,000 CVEs for 2025 in an effort to maintain continuity.

Industry experts warn the consequences could be far-reaching. Despite the challenges, MITRE has affirmed its commitment to the CVE program and its role as a global resource. However, unless a new funding arrangement is secured, the future of this foundational infrastructure remains in question.

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