Economic Archives | Page 444 of 709 | Digital Watch Observatory

Emmer pushes for pro-stablecoin laws and rejects CBDCs

US Representative Tom Emmer called for stronger pro-stablecoin laws during a House Financial Services Committee hearing on 11 March, while criticising central bank digital currencies (CBDCs) as a threat to American values. Emmer, who reintroduced the CBDC Anti-Surveillance State Act on 6 March, warned that CBDC technology could undermine American freedoms and privacy. The proposed bill seeks to block the creation of a US CBDC without Congress’s explicit approval, addressing concerns over financial surveillance.

Emmer argued that CBDCs could disrupt American financial independence, citing the risks of government control over citizens’ transactions. He also highlighted the privacy concerns surrounding digital currencies issued by central banks, stating that stablecoins offer a better alternative by promoting financial privacy and innovation without compromising personal freedoms.

At the same hearing, Paxos CEO Charles Cascarilla called for consistent stablecoin regulations across global jurisdictions to prevent regulatory loopholes. Cascarilla stressed the importance of clear, reciprocal rules that would level the playing field for stablecoin issuers in the US and globally, fostering a competitive market that benefits both consumers and investors.

Amidst growing support for pro-crypto policies, Emmer reiterated that the US must prioritise pro-stablecoin legislation while rejecting CBDCs to safeguard privacy and financial autonomy. The stance aligns with broader concerns raised by the growing influence of cryptocurrency companies in US politics, which could pose challenges to regulatory stability.

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Salesforce strengthens AI presence in Singapore with major funding

Salesforce has announced a $1 billion investment in Singapore over the next five years to drive the adoption of its AI agent development platform, Agentforce.

The initiative aims to address labour shortages and enhance productivity by integrating autonomous AI agents into the workforce.

The investment follows similar moves by the company, including a $500 million commitment in Saudi Arabia and Argentina to expand AI and cloud services.

Singapore has been a key market for Salesforce, with its AI Research hub established in the country in 2019. The company’s local clients include Singapore Airlines, Grab, and FairPrice Group.

As part of the expansion, Salesforce has signed an agreement with Singapore Airlines to integrate Agentforce and other AI-driven solutions into its customer service operations.

The company continues to focus on AI innovation while restructuring its workforce, aligning itself with other tech giants investing in Southeast Asia’s digital future.

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Bitwise unveils Bitcoin corporate treasury ETF for investors

Bitwise has introduced the Bitwise Bitcoin Standard Corporations ETF (OWNB), offering investors exposure to companies with significant Bitcoin holdings. The ETF tracks the Bitwise Bitcoin Standard Corporations Index, which includes companies holding at least 1,000 Bitcoin in their treasuries. As of 11 March, major holdings in the ETF include Strategy’s stock (MSTR), which serves as a Bitcoin fund for Michael Saylor, and Bitcoin miners like MARA Holdings, CleanSpark, and Riot Platforms.

The ETF aims to capitalise on the increasing trend of companies buying Bitcoin as a strategic reserve asset, perceiving it as a scarce, liquid asset that is independent of government influence. Bitwise’s index is weighted according to Bitcoin holdings, with the largest holding capped at 20%. The popularity of Bitcoin treasuries has surged, with corporate Bitcoin holdings exceeding $54 billion as of 11 March, a figure driven by rising Bitcoin prices in 2024.

The ETF launch comes amid growing interest in Bitcoin-focused investment products, with other asset managers, such as Strive and REX Shares, planning similar offerings. In addition to companies, even the US government has begun developing a strategic Bitcoin reserve. The move signals a broader shift towards recognising Bitcoin as an integral part of corporate and governmental financial strategies.

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Lummis reintroduces bill to boost US Bitcoin holdings

Senator Cynthia Lummis has reintroduced the Bitcoin Act in the US Senate, aiming to authorise the government to purchase up to one million Bitcoin, which would represent about 5% of the total Bitcoin supply.

However, this move is part of an effort to strengthen the nation’s strategic reserves, with funding proposed through Federal Reserve earnings and new certificates for the Fed’s gold holdings.

The Treasury Secretary would oversee the acquisition and management of Bitcoin, with any new purchases held for at least 20 years and restrictions on selling more than 10% of the reserve every two years.

The Bitcoin Act reintroduction signals a continued push to incorporate Bitcoin into the US financial system. Lummis, a vocal advocate for Bitcoin, sees it as vital for America’s financial leadership in the 21st century.

The bill builds on President Trump’s Executive Order that established the Strategic Bitcoin Reserve, aiming to secure the nation’s digital assets while addressing the national debt.

In addition to federal efforts, Texas has introduced a bill proposing the acquisition of up to $250 million in Bitcoin and other cryptocurrencies, potentially making it the first state in the US to hold Bitcoin on its balance sheet.

These initiatives at both state and federal levels reflect a growing acceptance of Bitcoin as a legitimate financial asset.

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Celestial AI aims to rival Nvidia with innovative photonic technology

Celestial AI has raised an additional $250 million in venture capital, bringing its total funding to $515 million. The Silicon Valley startup is developing photonics-based technology to improve the speed and efficiency of AI computing.

By using light instead of electrical signals to connect AI chips with memory, the company aims to address the growing demand for higher memory bandwidth, a crucial factor in AI development.

Nvidia currently dominates this space with its NVLink and NVSwitch technologies, prompting a race among startups to develop alternative solutions.

Celestial AI’s ‘photonic fabric’ technology is designed to act as a high-speed bridge between chips, offering improved energy efficiency and lower latency. Backed by AMD’s venture arm, the company is positioning itself as a viable alternative to Nvidia’s proprietary systems.

The latest funding round was led by Fidelity Management & Research and included major investors such as BlackRock, Maverick Capital, and Tiger Global. Other participants included Temasek, Porsche Automobil Holding, and The Engine Ventures.

As AI hardware innovation accelerates, Celestial AI is among a growing group of startups seeking to reshape the industry with new approaches to chip design.

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Brazil’s tax chief calls for stricter controls on digital payments

Brazil’s tax revenue service may restart discussions on requiring financial technology firms to report transaction values, citing concerns over money laundering through lesser-known payment institutions.

Revenue service head Robinson Barreirinhas told a Senate hearing that the government still aims to extend its transaction-tracking intelligence to fintechs, despite public backlash that led to a suspension of the plan last year.

Authorities argue that fintechs, including those using the Pix instant payment system, should be subject to the same reporting rules as banks.

However, opposition to President Luiz Inácio Lula da Silva’s administration portrayed the measure as a hidden tax on workers, forcing the government to pause the rule in January amid falling approval ratings.

Barreirinhas emphasised that the ease of opening accounts in fintech platforms makes them vulnerable to illicit financial activity.

The tax agency remains concerned about organised crime funding in Brazil‘s economy, particularly through smuggled cigarettes, online betting, and cryptocurrencies.

Officials suggest that stronger oversight of digital transactions is necessary to prevent these activities from flourishing, potentially reigniting debate over the suspended regulations.

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Texas bill aims to limit crypto investments in state fund

A new bill introduced in Texas by Representative Ron Reynolds aims to restrict how much local and state authorities can invest in cryptocurrencies.

Filed on 10 March, the legislation proposes that the state’s comptroller be prohibited from investin more than $250 million of the Economic Stabilisation Fund, also known as the ‘rainy day’ fund, in Bitcoin or other digital currencies.

Additionally, the bill seeks to cap investments by municipalities and counties at $10 million.

The proposal follows the Texas Senate’s passing of a bill on 6 March to establish a strategic Bitcoin reserve, which could allow the state’s comptroller to invest an unlimited amount in Bitcoin.

The push for a state Bitcoin reserve aligns with wider efforts in US state legislatures, particularly following the 2024 political shifts under President Trump’s administration.

While the bill proposed by Reynolds is not directly tied to the Bitcoin reserve bill introduced by Republican State Senator Charles Schwertner, its introduction adds a layer of debate over cryptocurrency regulations at both state and federal levels. If the bill passes, it could be enacted on 1 September.

Despite recent federal actions, including an executive order from Trump to establish a ‘Strategic Bitcoin Reserve,’ questions about the president’s authority to implement such policies through executive orders remain.

Meanwhile, Wyoming Senator Cynthia Lummis has reintroduced legislation to codify the federal Bitcoin reserve proposal into law.

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Tech giants join forces to promote global standards for data provenance and AI transparency

OASIS Open, a global open-source and standards organisation, and the Data & Trust Alliance, a consortium focused on responsible data and AI practices, have announced the formation of the OASIS Data Provenance Standards Technical Committee (DPS TC).

The committee will build upon version 1.0.0 of the Data Provenance Standards developed by the Data & Trust Alliance’s cross-industry Working Group, expanding industry participation to establish formal technical standards for data transparency, accountability, and trust. Founding sponsors include Cisco, IBM, Intel, Microsoft, and Red Hat.

As AI adoption accelerates, organisations face increasing challenges in verifying data sources, ensuring compliance, and maintaining data integrity. The DPS TC aims to create a standardised metadata framework that tracks data lineage, transformations, and compliance across various platforms. This initiative will help organisations improve governance practices, mitigate risks related to data privacy and intellectual property, and enhance transparency in AI-driven applications.

The committee’s work will focus on:

Standardised data lineage tracking: Establishing clear and consistent methods for documenting data origins and transformations.
Compliance and risk management: Supporting organisations in meeting regulatory and ethical standards for data use.
Interoperability across platforms: Ensuring metadata models can be applied consistently across different databases, tables, and data pipelines.
Transparency for data users: Providing businesses and individuals with visibility into how data is sourced and managed.

IBM has already tested an early version of the standards, integrating them into its governance framework. According to Christina Montgomery, Chief Privacy and Trust Officer at IBM, this resulted in measurable improvements in data diligence and management processes.

The DPS TC will hold its first meeting on 8 April 2025, with participation open to organisations, industry leaders, and experts through OASIS membership. The committee aims to refine existing standards and develop implementation tools, with a goal of introducing broadly applicable metadata quality metrics within the next 12 to 18 months.

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Reliance Jio and SpaceX partner for Starlink in India

Mukesh Ambani’s Reliance Jio has struck a deal with Elon Musk’s SpaceX to bring Starlink satellite internet services to India, marking a surprising turn after months of rivalry over spectrum allocation.

Under the agreement, Jio will stock Starlink equipment in its retail stores, giving the US company direct access to thousands of outlets across the country.

Move like this one comes after New Delhi sided with Musk’s preferred method of spectrum allocation, despite Ambani’s earlier concerns that Starlink could dominate India’s telecom sector.

The deal follows a similar partnership between Starlink and Bharti Airtel, India’s second-largest telecom provider, both of which depend on government approval for operations to begin. While Airtel’s shares dipped slightly after the Jio announcement, Reliance Industries saw a marginal rise in trading.

Starlink, which has been awaiting licenses since 2022 due to national security concerns, is using the agreement as a low-cost entry into India’s fast-growing satellite internet market, expected to reach $1.9 billion by 2030.

For Musk, the stakes in India go beyond Starlink, as he recently secured a deal to open Tesla’s first showroom in the country.

However, high tariffs on imported electric vehicles remain a challenge. Meanwhile, Jio and SpaceX are also exploring other areas of cooperation, while Jio continues its own satellite broadband plans with Luxembourg-based SES.

Despite past disputes, the partnership signals a shift from competition to collaboration in India’s evolving telecom landscape.

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Spain approves bill to regulate AI-generated content

Spain’s government has approved a bill imposing heavy fines on companies that fail to label AI-generated content, aiming to combat the spread of deepfakes.

The legislation, which aligns with the European Union’s AI Act, classifies non-compliance as a serious offence, with penalties reaching up to €35 million or 7% of a company’s global revenue.

Digital Transformation Minister Oscar Lopez stressed that AI can be a force for good but also a tool for misinformation and threats to democracy.

The bill also bans manipulative AI techniques, such as subliminal messaging targeting vulnerable groups, and restricts the use of AI-driven biometric profiling, except in cases of national security.

Spain is one of the first EU nations to implement these strict AI regulations, going beyond the looser US approach, which relies on voluntary compliance.

A newly established AI supervisory agency, AESIA, will oversee enforcement, alongside sector-specific regulators handling privacy, financial markets, and law enforcement concerns.

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