Economic Archives | Page 631 of 714 | Digital Watch Observatory

AI takes on customer service roles in Japan as labour shortages grow

Companies in Japan are increasingly turning to AI to manage customer service roles, addressing the country’s ongoing labour shortage. These AI systems are now being used for more complex tasks, assisting workers across various industries.

Ridgelinez Ltd, a Fujitsu subsidiary, and Autobacs Seven Co have launched trials for ‘Rachel,’ an AI assistant that recommends products based on customer needs, specific car models, and available stock. The system, developed by Tokyo-based Couger Inc, is designed to ease the burden on car sales staff, allowing them to focus on more specialised tasks while the AI handles routine queries.

In other sectors, Oki Electric Industry and Kyushu Railway have introduced a trilingual AI assistant capable of speaking Japanese, English, and Chinese. This system provides passengers with station maps and assists with transfer information. Meanwhile, Tokyo startup Sapeet Co has developed an AI system that simulates customer interactions for training staff at jewellery stores, helping to improve customer service skills.

These AI solutions are playing a key role in addressing the labour shortage, allowing human employees to focus on more advanced tasks while AI systems manage routine customer service functions.

21Shares calls for unified EU crypto regulations

21Shares, a leading issuer of crypto exchange-traded products (ETPs), has called on the European Union to establish a unified regulatory framework for incorporating cryptocurrencies into investment products. The firm highlighted the current inconsistencies across member states, where countries like Germany and Malta allow crypto in UCITS funds, while others, such as Luxembourg and Ireland, do not.

A unified regulatory approach, 21Shares argues, would not only provide much-needed clarity for investors but also align Europe with other global markets, including the US and Hong Kong. By establishing clear guidelines, retail and institutional investors alike could benefit from greater diversification opportunities, all within a secure, regulated environment.

The European Securities and Markets Authority (ESMA) has already begun reviewing feedback on the inclusion of crypto assets in UCITS funds, with a decision expected to follow. 21Shares, which currently offers over 40 ETPs, believes this move would pave the way for greater access to digital assets in a regulated market.

Edge computing growth boosted by Duos and Accu-Tech partnership

Duos Technologies Group, through its subsidiary Duos Edge AI, has entered a strategic partnership with Accu-Tech to expand the deployment of edge data centres across the US. This collaboration aims to meet the rising demand for faster data processing and improved connectivity in underserved areas.

With Accu-Tech’s established distribution network, Duos Edge AI plans to accelerate the rollout of its advanced computing solutions. President Doug Recker sees this as a key moment in providing critical technology to local communities. The growing edge computing market, expected to reach $43.4 billion by 2027, highlights the importance of this venture.

CEO Chuck Ferry emphasises the alignment between Duos’ vision and the need for innovative infrastructure to support local businesses. By partnering with Accu-Tech, Duos ensures both reliable installation and efficient operation of its edge data centres.

The first edge data centres are expected to be operational by Q4 2024. The collaboration is set to improve connectivity and optimise performance, bringing advanced technology to underserved regions across the country.

Foxconn eyes massive Nvidia superchip plant in Mexico amid AI boom

Foxconn is constructing the world’s largest facility in Mexico for bundling Nvidia’s GB200 superchips, a crucial component of Nvidia’s upcoming Blackwell computing platform. The Taiwanese electronics giant, known for assembling Apple’s iPhones, has been capitalising on the surge in demand for AI technology by manufacturing servers designed for AI processing.

Nvidia has already started shipping samples of its Blackwell chips and expects substantial revenue from these in the coming months. Foxconn executives highlighted the enormous demand for Nvidia‘s Blackwell platform, with many industry players seeking to adopt this next-generation AI computing technology.

The manufacturing plant in Mexico will have substantial capacity, building on Foxconn’s existing investments in the country. The company’s production capabilities are equipped with advanced liquid cooling technologies necessary for supporting AI servers, ensuring they meet the growing needs of the AI sector.

In addition to its focus on AI, Foxconn is diversifying its operations by expanding into the electric vehicle market. The company plans to leverage its technological expertise to become a leading EV contract manufacturer, producing vehicles under its Foxtron brand while helping automakers with manufacturing.

Google enhances Android security with new anti-theft tools

Google is gradually rolling out new security features to protect user data, focusing on preventing unauthorised access in cases of theft. The latest tools, which include Theft Detection Lock, Offline Device Lock, and Remote Lock, were announced in May and are becoming available on various Android devices.

Theft Detection Lock uses AI to lock the screen when it detects movement commonly associated with theft, such as someone snatching the phone. Offline Device Lock automatically secures the screen if a phone remains offline for a while, while Remote Lock allows users to lock their phone remotely using only their phone number, even if they can’t log into Find My Device.

Some users have reported seeing the features on devices like the Xiaomi 14T Pro, though others may need to wait as Google rolls out these updates over time. Users are encouraged to ensure their Google Play Services are updated to potentially access these features sooner.

The new security options are supported on Android 10 and up for Theft Detection Lock and Offline Device Lock, while Remote Lock works on devices running Android 5 and higher.

Bahrain’s first bitcoin fund targets GCC investors

The National Bank of Bahrain has launched its first bitcoin investment fund aimed at institutional investors in the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. Developed in partnership with ARP Digital, the fund allows investors to gain exposure to bitcoin while ensuring full protection against potential losses, albeit with a cap on possible gains.

Abdulla Kanoo, co-founder of ARP Digital, described the collaboration with NBB as a potential game-changer for the regional market. By combining ARP Digital’s expertise in digital assets with NBB’s strong presence in the financial sector, they have created a secure investment product for those looking to explore bitcoin.

Bahrain’s efforts to cultivate a crypto-friendly environment have attracted major players like Binance and Crypto.com, while the UAE is also advancing its regulatory framework for cryptocurrencies. In 2023, Dubai’s Virtual Asset Regulatory Authority issued comprehensive rules to facilitate Web3 firms operating in the region.

According to Chainalysis, the MENA region recorded $338.7 billion in crypto transactions between July 2023 and June 2024, primarily driven by institutional investors. With the new fund, NBB provides a promising opportunity for regional investors to safely engage with bitcoin in a well-regulated landscape.

International business leaders to gather at UK’s first investment summit

The British government is set to hold its first international investment summit on October 14, with top executives from companies such as Google, Wayve, and Brookfield Asset Management attending. The summit is aimed at encouraging foreign direct investment to stimulate economic growth, a key focus for Prime Minister Keir Starmer since taking office in July.

Sponsorship for the event comes from major corporations like Barclays, HSBC, and Lloyds, with notable speakers including Ruth Porat from Alphabet and Bruce Flatt from Brookfield. Despite some controversy, such as Elon Musk criticising the United Kingdom for not inviting him, the summit has drawn significant attention from the global business community.

The government emphasised that the event would strengthen partnerships between businesses and the UK, providing investors with the confidence needed to drive future growth. Prior to the summit, Starmer will convene the first Council of Nations and Regions to align regional leaders on investment and economic strategies.

In a significant step towards sustainability, the government announced a £21.7 billion investment in carbon capture projects, underlining its commitment to green initiatives ahead of the summit.

Europe mulls blockchain for unified digital assets

A European Central Bank official has suggested the creation of a ‘European ledger,’ a blockchain platform that could bring together digital assets and money across the continent. This proposed platform, referred to as a digital capital markets union, would tackle Europe’s fragmented financial systems and outdated regulations, creating a more efficient environment for digital assets.

According to Piero Cipollone, an ECB executive board member, many European banks are already experimenting with distributed ledger technology (DLT), which could lead to greater financial integration. However, non-interoperable systems between countries continue to create fragmented liquidity. A unified platform could bring significant benefits, including cost reductions and round-the-clock operations, benefiting both investors and central banks.

Despite the advantages, concerns remain that a European ledger could stifle financial innovation. Cipollone noted that traditional finance might require the flexibility provided by competing DLT platforms to flourish. As discussions continue, the ECB is exploring ways to settle DLT transactions using central bank money, while seeking long-term solutions to avoid inefficiencies.

Samsung apologises amid earnings miss and AI struggles

South Korean tech giant, Samsung, has issued an apology to its customers and investors after missing market expectations for its third-quarter earnings. The electronics giant reported a consolidated operating profit of KRW9.1 trillion ($6.64bn), falling short of the KRW10.33 trillion ($7.65bn) predicted by analysts. Despite this, the company’s sales saw a 6% rise compared to the previous quarter, totalling KRW79 trillion ($58bn).

Vice-chairman Jun Young-hyun expressed concerns over the company’s performance, emphasising the need to regain its technological competitiveness. The statement acknowledged Samsung’s struggle to keep up with market demands, particularly in the rapidly expanding AI chip sector, where rivals like Nvidia have surged ahead. Samsung’s stock fell a further 1.3%, compounding its 20% decline earlier this year.

Samsung has held the title of the world’s largest memory chipmaker for over 30 years but faces increasing competition in both traditional and advanced chip sectors. The delay in the launch of its high-bandwidth memory (HBM3E) chips has been one of the challenges contributing to its weaker performance, with rival SK hynix making significant gains.

Industry analysts highlight that Samsung’s slower response to the AI chip boom has made it more dependent on lower-margin legacy chips. The company’s memory and contract chip manufacturing divisions have both struggled against competition from Chinese manufacturers and Taiwan Semiconductor Manufacturing Company (TSMC). More detailed earnings figures are expected later this month.

El Salvador: Blueprint for the bitcoin economy

On 7 September 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender, sparking global discussions about the role of cryptocurrencies in national economies. This groundbreaking decision transformed El Salvador into a beacon for financial innovation as other nations began to closely monitor its bold experiment. Initially seen as a monetary gamble, El Salvador’s decision has evolved into a strategy with far-reaching implications, both domestically and internationally. While the International Monetary Fund (IMF) and other financial institutions have raised concerns about potential risks, El Salvador’s commitment to cryptocurrency adoption has set a precedent by reshaping global economic systems.

From experiment to national strategy

When El Salvador made bitcoin legal tender, it was an ambitious experiment aimed at solving several economic challenges. The country, reliant on remittances and with a significant part of its population unbanked, saw cryptocurrency as a way to promote financial inclusion. Today, with 5,748.8 bitcoins held in national reserves, El Salvador’s leadership continues to buy bitcoin, signalling confidence in the long-term potential of the digital asset. In this way, the initial idea of bitcoin adoption has transformed from a simple test into a cornerstone of the nation’s financial strategy. El Salvador is now laying the foundation for broader economic development by positioning itself as a crypto-friendly environment.

Economic impact: benefits and challenges

El Salvador’s embrace of bitcoin has left a significant mark on its economy, though it has not been without its challenges. One of the major benefits has been the ability to streamline remittances, allowing Salvadorians abroad (of which there are many in emigration) to send money home using bitcoin, cutting out the traditional intermediaries and lowering fees. This move has made remittances faster, more affordable, and more accessible.

The country has also witnessed a surge in foreign investment, as businesses interested in cryptocurrency see El Salvador as an attractive hub. Crypto enthusiasts and digital nomads have flocked to the country, boosting tourism and putting El Salvador on the global map as a bitcoin-friendly destination.

Moreover, El Salvador’s innovation goes beyond adopting bitcoin as legal tender; it has also ventured into the creation of bitcoin bonds and infrastructure projects like ‘Bitcoin City.’ President Nayib Bukele’s vision for Bitcoin City includes a tax-free, crypto-friendly zone designed to attract foreign investment. The city, with a projected USD $1.6 billion investment, will feature modern infrastructure and create an environment conducive to the growth of blockchain and cryptocurrency businesses. If successful, Bitcoin City could become a global hub for digital finance, further cementing El Salvador’s position at the forefront of this financial revolution.

However, bitcoin volatility remains a persistent issue. Critics argue that heavy reliance on such a fluctuating asset could jeopardise financial stability. Unpredictable price swings in the crypto market pose a risk, potentially leading to instability in the national economy. While El Salvador continues to bet on bitcoin’s long-term success, these challenges highlight the need to carefully navigate the balancing act between innovation and economic resilience.

Educating for a bitcoin future

One of the latest initiatives El Salvador has undertaken is its Bitcoin certification programme. Spearheaded by the National Bitcoin Office (ONBTC), the programme aims to educate 80,000 government employees on the intricacies of bitcoin and blockchain technology. This strategic move underscores the nation’s commitment to integrating bitcoin into its broader governance structure.

By equipping civil servants with essential knowledge, El Salvador ensures that bitcoin adoption is not just a top-down policy but becomes deeply embedded in the daily functioning of the state. Beyond focusing on external performance, El Salvador is working to seed crypto into the core of its state organisations, ensuring that government employees fully understand the nature of cryptocurrency and not merely reproduce its use. This educational initiative is also expected to create a ripple effect across other sectors, solidifying El Salvador’s place as a leader in the global crypto space.

Global influence and partnerships

El Salvador’s progressive approach to cryptocurrency is beginning to influence other nations. Argentina, for example, has recently started collaborating with El Salvador to learn from its experience. Argentina’s pro-crypto president, Javier Milei, has shown interest in using cryptocurrencies to stabilise the country’s economy. This collaboration is a testament to the growing recognition of El Salvador’s pioneering role in this space. As more countries begin to explore cryptocurrency adoption, El Salvador’s approach provides a practical case study, proving that integrating digital assets into a national economy can have tangible benefits.

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Regulatory challenges and criticism

Despite the enthusiasm surrounding Bitcoin adoption, El Salvador has faced significant criticism from international organisations. The IMF has been particularly vocal, warning that the adoption of cryptocurrency as legal tender poses risks to financial stability, consumer protection, and market integrity. These warnings highlight the regulatory challenges El Salvador faces, especially when dealing with global institutions that remain sceptical of digital currencies. However, the country has responded by reinforcing its regulatory frameworks and increasing transparency around its bitcoin activities. While the road is not without obstacles, El Salvador’s approach showcases a willingness to navigate these complexities and maintain its position as a leader in the crypto space.

El Salvador’s Chivo wallet project

One of the most significant elements of El Salvador’s bitcoin adoption is the introduction of the Chivo wallet, which plays a pivotal role in promoting financial inclusion. Chivo, the government-backed digital wallet, allows Salvadorians to easily access and use bitcoin, providing a crucial gateway to financial services for those previously excluded from the traditional banking system.

To help citizens become familiar with the cryptocurrency, the government offered USD $30 worth of bitcoin to each individual through the Chivo wallet, the country’s digital currency platform. However, public reception was mixed, with an August 2021 poll indicating that 70% of respondents opposed the initiative, and only 15% expressed confidence in bitcoin. Concerns about volatility also led to protests in San Salvador, as many feared the potential for drastic price fluctuations.

The Chivo wallet, available on mobile devices, empowers even the unbanked population to participate in the digital economy by enabling seamless transactions and easy access to remittances sent from abroad. By leveraging this digital wallet project, El Salvador has not only embraced crypto but has also laid the foundation for a more inclusive financial ecosystem. This approach serves as a model for other developing nations, showing how the integration of a government-supported crypto platform can help bypass traditional banking barriers, delivering financial tools to millions and boosting both individual economic prospects and national economies.

The broader global implications

El Salvador’s bold experiment is already making waves across the world. The Central African Republic has followed in its footsteps, adopting bitcoin as legal tender. As other nations watch closely, it is becoming clear that El Salvador’s approach could inspire a global movement towards cryptocurrency-driven economies. For countries struggling with inflation, financial exclusion, or dependence on foreign currencies, bitcoin adoption represents an alternative path. The world sees that cryptocurrency is not just a speculative asset—it can be a powerful tool for economic development and innovation.

A leader in the new digital financial order

El Salvador’s decision to adopt bitcoin as legal tender has positioned the country at the forefront of a financial revolution. What started as a daring experiment has blossomed into a comprehensive national strategy with global implications. Despite the challenges, including market volatility and regulatory pushback, El Salvador’s proactive approach sets a powerful and inspiring example for other countries. By embracing cryptocurrency from the deepest level of society, from education to infrastructure, El Salvador is showing the world that digital currencies can drive economic progress. As more nations observe its success, the small Central American nation may just be paving a historical way for global financial transformation.