Central bank digital currencies (CBDCs) face significant challenges in gaining consumer acceptance, according to a new survey by GlobalData. The findings reveal that users in countries with active CBDC programmes, such as the Bahamas, Jamaica, and Nigeria, are hesitant to switch from traditional payment methods due to a lack of incentives, privacy concerns, and technical complexities.
Blandina Szalay, an analyst at GlobalData, highlighted the slow adoption rates, explaining that CBDCs often complicate payments without offering clear benefits. Convenience and established habits remain strong drivers for consumers, making it difficult for CBDCs to gain traction.
Despite these hurdles, the global push for CBDCs continues, with 134 countries representing 98% of the world’s economy actively exploring the technology. Over 65 countries, including India and Brazil, are advancing their projects, with many in pilot phases. Central banks hope CBDCs can improve cross-border payments, promote financial inclusion, and enhance monetary stability, but achieving widespread adoption remains a formidable task.
The Czech National Bank is evaluating whether to include bitcoin in its reserves, Governor Aleš Michl revealed. No immediate decision is expected, but if approved, the bank could allocate up to 5% of its €140 billion reserves to the cryptocurrency.
Michl, who has focused on diversifying reserves since taking office in 2022, has already increased gold purchases and shifted investments toward equities. He plans to present the bitcoin proposal to the bank’s board, acknowledging the asset’s volatility as a key consideration.
While some central banks remain sceptical about bitcoin’s role as a reserve asset, growing institutional adoption has fuelled debate. The European Central Bank continues to reject bitcoin, likening it to speculative bubbles, while Switzerland has seen calls for its central bank to hold bitcoin alongside gold.
Interest in bitcoin has surged, with its value more than doubling in 2024. BlackRock’s bitcoin exchange-traded funds and the US government’s new cryptocurrency initiatives have contributed to its rise, making it an increasingly attractive option for investors.
Following the failure of tech companies, the uranium market, which is crucial for developing power-intensive AI technologies through nuclear energy, experienced price fluctuations. The spot price of uranium dropped $3.90 per pound, settling at $67.30 per pound by Tuesday, marking a weekly decline of $6.55. Despite the price decrease, the market saw substantial activity, with 21 recorded transactions amounting to 1.8 million pounds of uranium oxide in the past week. This indicates potential emerging demand, especially from power utilities seeking prices below $70 per pound.
BMO Capital Markets analyst George Heppel maintains an optimistic long-term outlook for uranium demand, highlighting ongoing nuclear reactor constructions in China as a driving force. This growth expectation is underscored by improving economics in the carry trade, which might sustain or even boost uranium prices despite recent declines. Interestingly, as uranium prices dipped, major uranium companies like Cameco, Kazatomprom, and NexGen Energy experienced stock gains on Tuesday, signalling investor confidence in the sector’s future.
The report captures a complex financial landscape where tech stocks exhibit temporary volatility while the uranium market remains robust. Despite immediate setbacks in tech, there is a potential recovery path, and the promising outlook for uranium reflects its indispensable role in advancing AI technologies. This dual narrative of short-term market challenges and optimistic long-term growth prospects offers valuable insights into the interplay between evolving technological demands and foundational energy resources.
US officials are evaluating the potential national security risks posed by the Chinese AI app DeepSeek. White House press secretary Karoline Leavitt confirmed the National Security Council is leading the review, highlighting concerns about American AI dominance. White House AI and crypto adviser David Sacks suggested intellectual property theft might have played a role in DeepSeek’s development.
Global technology stocks faced a sell-off over fears that DeepSeek’s low-cost AI model could challenge major US firms like OpenAI and Google. Sacks explained that DeepSeek may have used a technique called distillation, allowing one AI model to learn from another. He warned that American AI companies would likely implement measures to block such practices.
Donald Trump argued that DeepSeek’s rise should push US firms to intensify their AI efforts. While acknowledging China’s progress, he maintained that American companies remain leaders in innovation. He suggested that more affordable AI solutions could benefit the industry without sacrificing technological advances.
Washington continues to restrict AI chip exports to China, aiming to slow its technological advancements. The Commerce Department, under Trump’s nominee Howard Lutnick, is set to play a key role in enforcing these limitations.
Taiwan’s government is assessing whether to assist its industry in response to possible US tariffs on semiconductors, Premier Cho Jung-tai confirmed. Authorities are closely monitoring recent developments after former President Donald Trump pledged to impose tariffs to encourage domestic production in the US.
Taiwan, home to leading chipmaker TSMC, plays a crucial role in global technology supply chains. Cho emphasised Taiwan’s strategic position in the industry and pledged continued efforts to strengthen external cooperation and maintain technological leadership. Economy Minister Kuo Jyh-huei downplayed concerns, suggesting any tariff impact would be minimal due to Taiwan’s technological edge.
During Trump’s previous administration, TSMC committed to a $12 billion factory in Arizona, later expanding the investment to $65 billion. The latest tariff proposal follows his recent directive for US agencies to investigate trade deficits and alleged currency manipulation, which could present further challenges for Taiwan.
Taiwan’s trade surplus with the US surged 83% last year, reaching a record $111.4 billion, driven by high-tech exports, particularly semiconductors. TSMC has declined to comment on the potential tariffs, while the government continues to evaluate its response.
Italian cybersecurity startup Exein has signed an agreement with Taiwan’s MediaTek to embed its security technology into the chipmaker’s Genio platform. The partnership will provide advanced security features for billions of chips used in mobile, home, automotive, and healthcare industries worldwide.
Exein expects its technology to be implemented in over 3 billion devices as a result of the deal. The partnership, valued at more than 5 million euros, is projected to double in worth by 2028. The company views MediaTek as a key strategic partner and sees this collaboration as a step towards expanding into automotive and robotics sectors globally.
Italy has been striving to foster a stronger tech startup ecosystem, and this agreement marks a significant milestone. Exein previously raised $15 million in Series B funding and counts major companies like Daikin, Seco, and Kontron among its clients.
The Chinese AI app DeepSeek was removed from Apple and Google app stores in Italy on Wednesday, following a request by the country’s data protection authority for information on its handling of personal data. Italy’s Garante regulator gave DeepSeek 20 days to clarify what data it collects, its sources, purposes, and whether it is stored in China. Concerns over safeguarding underage users, potential bias, and risks of electoral interference were also highlighted by Garante chief Pasquale Stanzione.
The app, which recently surpassed ChatGPT in downloads from Apple’s App Store, remains functional for Italian users who had already installed it. It is also still available in other European Union countries and the UK. Ireland‘s Data Protection Commission has also sought details about DeepSeek’s data processing practices for Irish users, while Germany‘s government has voiced concerns about potential AI-driven election interference ahead of its February vote.
Italy’s Garante is known for its proactive stance on AI regulations, having temporarily banned ChatGPT in 2023 over alleged breaches of EU privacy laws. DeepSeek, which touts itself as a cost-efficient alternative to U.S. AI services, has faced mounting scrutiny as it gains popularity. Meanwhile, Irish regulators noted that DeepSeek has not designated Ireland as its EU headquarters, complicating oversight under EU data protection rules.
Google has appealed to the EU’s top court to overturn a record 4.3-billion-euro antitrust fine imposed seven years ago, arguing that the penalty punished the company for its innovation. The fine was originally levied by the European Commission, which accused Google of using its Android operating system to suppress competition by forcing manufacturers to pre-install Google Search, Chrome, and the Google Play store on devices. While the fine was later reduced to 4.1 billion euros by a lower court, Google maintains that its actions fostered competition, not hindered it.
During Tuesday’s hearing, Google lawyer Alfonso Lamadrid stated that the Commission failed to meet its legal obligations and relied on errors in law. Lamadrid defended Google’s agreements with phone manufacturers, insisting they were not anti-competitive, but rather beneficial to the market. The case centres on whether the European Commission acted appropriately in its investigation and decision to reshape markets through such penalties.
The judges of the Luxembourg-based Court of Justice of the European Union will make a final ruling in the coming months, with no further opportunity for appeal. In addition to this case, Google remains under scrutiny by EU regulators for its advertising business, with another major decision expected later this year.
Poland has expanded its Bitcoin ATM network to 219 machines, surpassing El Salvador to become the fifth-largest network globally, just behind the US, Canada, Australia, and Spain. The country added 10 new machines on 27 January, continuing its four-month spree of new installations, which began in October 2024. Meanwhile, El Salvador, which was one of the third-largest networks in October 2022, has not increased its Bitcoin ATM capacity.
Despite Poland’s growth, Salvadoran officials are focused on the broader adoption of Bitcoin. Juan Carlos Reyes, president of El Salvador’s National Commission of Digital Assets, explained that while Bitcoin ATMs provide a valuable service, they are becoming less essential due to the seamless integration of Bitcoin payments in daily life, reducing reliance on ATMs. He also pointed out that Bitcoin’s utility extends far beyond ATM transactions, giving citizens more options for everyday purchases.
Reyes further stressed the importance of balanced regulation for Bitcoin and crypto ATMs, particularly around concerns such as money laundering. He emphasised that Bitcoin’s traceable nature makes it fundamentally different from other digital assets, which should be considered when developing regulatory measures.
The global crypto ATM landscape now has around 38,100 machines spread across 65 countries. Notably, Australia has seen consistent growth and joined the US and Canada in surpassing 1,000 active Bitcoin ATMs.
Chinese AI startup DeepSeek has shaken the global AI industry with its low-cost, high-performance models, sparking mixed reactions among leading US developers. Its flagship AI assistant recently surpassed OpenAI’s ChatGPT as the most downloaded app on Apple’s US App Store. DeepSeek achieved this using Nvidia’s H800 chips, training its model for under $6 million—an astonishing contrast to the billions spent annually by US tech giants.
While some American AI experts acknowledged DeepSeek’s achievements, many remain unconvinced. OpenAI’s CEO, Sam Altman, praised the R1 model for its cost-effectiveness, but analysts noted that the $6 million figure only reflects the final training phase, with total development costs likely exceeding $1 billion. Nvidia viewed DeepSeek’s success as evidence of growing demand for its AI chips, despite US export controls aimed at slowing China’s progress.
US-based firms like Snowflake have already added DeepSeek models to their AI offerings, citing overwhelming customer interest. However, concerns about China‘s involvement in AI technology persist. DeepSeek’s decision to release its models as open source has drawn applause from industry leaders, highlighting a shift toward more accessible AI development.
With China’s advancements narrowing the gap in AI innovation, competition between US and Chinese firms intensifies. DeepSeek’s rapid rise is forcing industry players to rethink their strategies, while questions about scalability and long-term sustainability remain unanswered.
