Economic Archives | Page 617 of 713 | Digital Watch Observatory

Ride-hailing app Yango suspended in Togo over safety concerns

Togo’s transport ministry has suspended the operations of Yango, a ride-hailing app owned by Yandex, the tech giant from Russia, due to security concerns. The app had been operating in the West African nation since June, but the ministry stated Yango was functioning without proper authorisation and in violation of national regulations.

The decision to suspend Yango was driven by concerns over passenger safety, as well as the app’s failure to adhere to the country’s legal procedures. The ministry emphasised the need to ensure that transportation services in Togo operate in compliance with local laws.

Effective immediately, Yango’s services have been halted across the entire national territory. The company has not yet commented on the suspension or provided any response to requests for information.

Yango, which had only recently entered the Togolese market, now faces an indefinite pause in operations as the government prioritises safety and regulatory compliance for ride-hailing services.

Samsung enhances home device security with blockchain and AI

Samsung is taking its commitment to security up a notch by expanding its blockchain technology to cover a wider range of AI-powered home appliances. The South Korean tech giant announced that its Knox Matrix framework, originally designed for mobile devices and televisions, will now protect home devices using a ‘Trust Chain.’ This private blockchain system enables connected devices to monitor each other for potential security issues, keeping users informed in case of any threats.

In addition to blockchain-based security, Samsung is introducing ‘Cross Platform’ technology, ensuring consistent protection across devices, regardless of the operating system. The company also aims to improve privacy with its ‘Credential Sync,’ which encrypts and synchronises user data for enhanced safety.

Expected to roll out these new features next year, Samsung will integrate biometric authentication, allowing users to log into apps with fingerprints instead of passwords. The move builds on the company’s previous blockchain ventures, including its Samsung Blockchain Wallet and Blockchain Keystore.

Controversy over ECB report urging Bitcoin restrictions

A recent paper from the European Central Bank has sparked controversy by claiming that Bitcoin should either be heavily regulated or banned altogether to prevent older holders from profiting at the expense of new investors. Published on 12 October 2024, the report suggests that those who purchased Bitcoin early are exploiting newer buyers, a practice common to all financial markets. The authors argue that without intervention, the rising price of Bitcoin could lead to social unrest.

The paper also attempts to link Bitcoin to criminal activity, despite a US Treasury report from May 2024 confirming that fiat cash remains the primary tool for illicit transactions. Moreover, the authors neglect the fact that Bitcoin was created as a response to government-induced inflation, which continues to erode the value of fiat currencies globally.

Bitcoin’s pseudonymous creator, Satoshi Nakamoto, designed the digital asset as a decentralised method of payment and a hedge against monetary mismanagement. With rising public sector debt in both the UK and the US, critics argue that Bitcoin’s growing popularity is a direct reaction to the failings of traditional financial systems.

IBM unveils new AI model for businesses amid intensifying generative AI competition

IBM unveiled its latest AI model, known as ‘Granite 3.0,’ on Monday, targeting businesses eager to adopt generative AI technology. The company aims to stand out from its competitors by offering these models as open-source, a different approach from firms like Microsoft, which charge clients for access to their AI models. IBM’s open-source strategy promotes accessibility and flexibility, allowing businesses to customise and integrate these models as needed.

Alongside the Granite 3.0 models, IBM provides a paid service called Watsonx, which assists companies in running these models within their data centres once they are customised. This service gives enterprises more control over their AI solutions, enabling them to tailor and optimise the models for their specific needs while maintaining privacy and data security within their infrastructure.

The Granite models are already available for commercial use through the Watsonx platform. In addition, select models from the Granite family will be accessible on Nvidia’s AI software stack, allowing businesses to incorporate these models using Nvidia’s advanced tools and resources. IBM collaborated closely with Nvidia, utilising its H100 GPUs, a leading technology in the AI chip market, to train these models. Dario Gil, IBM’s research director, highlighted that the partnership with Nvidia is central to delivering powerful and efficient AI solutions for enterprises looking to stay ahead in a rapidly evolving technological landscape.

Asia’s private wealth shows rising interest in digital assets

A new report from Aspen Digital reveals that 76% of Asia’s private wealth sector has already ventured into digital assets, with an additional 18% planning future investments. Interest in digital assets has surged since 2022, when just 58% of respondents had explored the space. The survey covered 80 family offices and high-net-worth individuals and found that most manage assets ranging from $10 million to $500 million.

Among those invested, 70% have allocated less than 5% of their portfolios to digital assets, although some increased their holdings to over 10% in 2024. Interest in decentralised finance (DeFi) and blockchain applications continues to grow, with two-thirds expressing a desire to explore DeFi, while 61% are keen on AI and decentralised physical infrastructure.

The approval of spot Bitcoin ETFs, particularly in the US and Hong Kong, has driven increased demand for digital assets. The report highlighted that 53% of investors have gained exposure through funds or ETFs, with optimism remaining high as 31% predict Bitcoin could reach $100,000 by the end of 2024.

TokenPocket and Fiat24 bring crypto payments to daily life

TokenPocket, a global crypto wallet, has partnered with Swiss-regulated Web3 banking platform Fiat24 to simplify the use of digital currencies in everyday transactions. While over 600 million people worldwide own crypto, spending it on daily purchases remains complicated due to conversion processes and fees. The collaboration aims to bridge this gap by making crypto spending easier.

TokenPocket supports various blockchain networks, including Bitcoin, Ethereum, and Solana, allowing users to securely manage their assets. Fiat24 brings decentralised banking to the table, using blockchain technology to manage operations via smart contracts. The integration enables users to seamlessly convert and spend their crypto.

The TP Card, born from this collaboration, allows users to spend their crypto just like traditional currency. Available across 32 European countries, it can be linked with Apple Pay and Google Pay, making crypto transactions as easy as regular card payments. The partnership is poised to reshape global finance by merging digital assets with everyday spending.

Meta’s oversight board seeks public input on immigration posts

Meta’s Oversight Board has opened a public consultation on immigration-related content that may harm immigrants following two controversial cases on Facebook. The board, which operates independently but is funded by Meta, will assess whether the company’s policies sufficiently protect refugees, migrants, immigrants, and asylum seekers from severe hate speech.

The first case concerns a Facebook post made in May by a Polish far-right coalition, which used a racially offensive term. Despite the post accumulating over 150,000 views, 400 shares, and receiving 15 hate speech reports from users, Meta chose to keep it up following a human review. The second case involves a June post from a German Facebook page that included an image expressing hostility toward immigrants. Meta also upheld its decision to leave this post online after review.

Following the Oversight Board’s intervention, Meta’s experts reviewed both cases again but upheld the initial decisions. Helle Thorning-Schmidt, co-chair of the board, stated that these cases are critical in determining if Meta’s policies are effective and sufficient in addressing harmful content on its platform.

Meta unveils Movie Gen in collaboration with Blumhouse

Meta, the owner of Facebook, announced a partnership with Blumhouse Productions, known for hit horror films like ‘The Purge’ and ‘Get Out,’ to test its new generative AI video model, Movie Gen. This follows the recent launch of Movie Gen, which can produce realistic video and audio clips based on user prompts. Meta claims that this tool could compete with offerings from leading media generation startups like OpenAI and ElevenLabs.

Blumhouse has chosen filmmakers Aneesh Chaganty, The Spurlock Sisters, and Casey Affleck to experiment with Movie Gen, with Chaganty’s film set to appear on Meta’s Movie Gen website. In a statement, Blumhouse CEO Jason Blum emphasised the importance of involving artists in the development of new technologies, noting that innovative tools can enhance storytelling for directors.

This partnership highlights Meta’s aim to connect with the creative industries, which have expressed hesitance toward generative AI due to copyright and consent concerns. Several copyright holders have sued companies like Meta, alleging unauthorised use of their works to train AI systems. In response to these challenges, Meta has demonstrated a willingness to compensate content creators, recently securing agreements with actors such as Judi Dench, Kristen Bell, and John Cena for its Meta AI chatbot.

Meanwhile, Microsoft-backed OpenAI has been exploring potential partnerships with Hollywood executives for its video generation tool, Sora, though no deals have been finalised yet. In September, Lions Gate Entertainment announced a collaboration with another AI startup, Runway, underscoring the increasing interest in AI partnerships within the film industry.

UAE to launch new legal framework for DAOs

The Ras Al Khaimah Digital Assets Oasis (RAK DAO) in the UAE is preparing to launch a new legal framework for decentralised autonomous organisations (DAOs), marking a significant step in enhancing the country’s digital asset sector. The framework, set to be discussed on 25 October, aims to clarify how DAOs can remain compliant with legal and governance requirements while providing protections for founders and members.

DAOs in the UAE will benefit from clear tax obligations and will be able to own both onchain and offchain assets. Additionally, the framework offers the ability to engage in legally binding contracts, as well as guidance on resolving disputes. The new structure is expected to attract global participants, as DAOs can be established remotely without the need for a physical presence in the UAE.

The UAE’s approach offers a cost-effective alternative to Switzerland, where setting up a DAO can cost up to $46,000. In comparison, the UAE’s framework starts at just $3,000, making it accessible to even smaller DAOs.

Bain and OpenAI to develop AI solutions for key industries

Bain & Company announced it is expanding its partnership with OpenAI to offer AI tools like ChatGPT to its clients. The firms previously formed a global alliance to introduce OpenAI technology to Bain’s clients, and the consultancy has now made OpenAI platforms, including ChatGPT Enterprise, available to its employees worldwide.

Bain is also setting up an OpenAI Centre of Excellence, managed by its own team, to further integrate AI solutions. The partnership will initially focus on developing custom solutions for the retail and healthcare life sciences industries, with plans for expansion into other sectors.

While Bain did not disclose financial details, around 50 employees will be dedicated to this collaboration, as reported by the Wall Street Journal.