Vietnam’s president and Communist Party chief, To Lam, is preparing for a significant visit to the US next week, where he is set to meet with major US corporations, including Google and Meta. According to sources, this marks Lam’s first trip to the US since his appointment in August as the leader of the party, Vietnam’s most influential political role. Although the details of the meetings remain undisclosed, the discussions are expected to focus on business and technological ties, as Meta and Google already have deep involvement in Vietnam through services like Facebook and manufacturing efforts.
Lam is also scheduled to attend a business forum on 23 September, including representatives from various US companies. The forum, organised by the US-ASEAN Business Council (USABC), highlights Vietnam’s growing importance as a manufacturing hub and a strategic market for American corporations. Over the last year and a half, US businesses have increased their engagement in Vietnam, with major firms such as Boeing, Mastercard, and Amazon actively participating in business missions.
While Lam’s meetings with Meta and Google signal deepening tech collaboration, the larger context of the trip reflects the US and Vietnam’s evolving diplomatic relationship. Washington views Vietnam as a critical partner in diversifying its supply chains, reducing dependency on China, and exploring cooperation in sensitive industries like undersea cables. However, it remains unclear whether Lam will meet US President Joe Biden during this trip, as the White House has not confirmed any plans.
Lam’s US visit comes on the heels of a meeting with Chinese President Xi Jinping last month, reflecting his role in navigating Vietnam’s relationships with major world powers. After addressing the UN General Assembly, he is expected to fly to Cuba and later, in early October, he will embark on a state visit to France.
Ethereum has declined, hitting its lowest value against Bitcoin since April 2021. The cryptocurrency has fallen over 55% from its peak in 2021, now trading at 0.039 BTC, down 24% this year and 35% from its yearly high. Ethereum has also dropped to $2,300 in US dollar terms, marking its lowest price since February.
The downturn is largely due to a lack of interest from institutional investors, with Ether-focused ETFs seeing outflows of $581 million. This sharply contrasts with Bitcoin spot funds, which have attracted $18 billion in inflows. Meanwhile, Ethereum has faced competition from layer-2 networks like Base and Polygon, which offer faster transactions at lower costs.
Further contributing to the drop are large-scale sales from key figures like Vitalik Buterin and the Ethereum Foundation. High-profile investors, including Jump Trading, have also reduced or completely liquidated their Ether holdings, further fuelling concerns about Ethereum’s future.
Donald Trump has unveiled a new cryptocurrency business, World Liberty Financial, during a live event on X Spaces. However, few details were provided about the company, its formation, or financing. The timing of the launch, just before the upcoming election, is unusual, but Trump aims to attract digital asset advocates.
The former president, once a critic of cryptocurrencies, has now embraced them, pledging to make the US the ‘crypto capital of the planet’. He promises minimal regulation and a national bitcoin reserve. This shift is seen as part of his strategy to appeal to tech-savvy voters.
Trump’s two sons, Eric and Donald Jr., have actively promoted the project, claiming it will revolutionise digital asset finance. Despite these bold statements, specifics about how World Liberty Financial will operate remain unclear.
Trump’s cryptocurrency move, combined with his evolving stance on digital assets, signals his focus on emerging financial technologies as a key aspect of his re-election campaign, looking to capitalise on the growing interest in the sector.
A growing number of countries, representing 98% of the global economy, are exploring digital versions of their currencies, with almost half of them at an advanced stage of development. Countries like China, the Bahamas, and Nigeria have already seen a noticeable increase in the usage of their central bank digital currencies (CBDCs).
Research by the Atlantic Council reveals that all G20 nations are now investigating CBDCs, with 44 countries currently piloting them, up from 36 last year. Authorities are accelerating these efforts in response to decreasing cash usage and the potential threat from cryptocurrencies like Bitcoin and big tech companies.
Notable growth has been observed in the CBDCs of the Bahamas, Jamaica, and Nigeria, while China’s digital yuan (e-CNY) has seen its transaction value almost quadruple to 7 trillion yuan ($987 billion). The European Central Bank has also launched a multi-year digital euro pilot, while the US, despite being slower to act, has recently joined a cross-border CBDC project with six other central banks.
Meanwhile, the United States is grappling with privacy concerns over CBDCs. Although a bill prohibiting a ‘retail’ CBDC has been passed by the US House of Representatives, the issue remains prominent in the country’s political discourse. Elsewhere, Russia’s digital rouble pilot has expanded to Moscow’s metro, and Iran is working on a digital rial.
MicroStrategy has announced plans for its third debt offering this year, aiming to raise $700 million by issuing convertible senior notes due in 2028. The company intends to use the funds to pay off $500 million in existing senior secured notes and purchase more Bitcoin, with any remaining proceeds going towards general corporate purposes. The notes will be unsecured and will begin paying interest from March 2025, available only to qualified institutional buyers.
This marks MicroStrategy’s third debt offering in 2024, following similar issuances in March and June. The company, one of the largest public holders of Bitcoin, currently holds 244,800 BTC, valued at approximately $14 billion. However, the volatility of its Bitcoin holdings has affected its financial performance, with the company posting a net loss of $102.6 million in the second quarter of 2024, largely driven by a $180.1 million digital asset impairment.
Despite concerns about its significant exposure to Bitcoin, MicroStrategy’s stock has performed well. Its share price has surged nearly 295% over the past year, with a 96% increase so far in 2024, reaching $134 as of 16 September.
Google secured a significant victory on Wednesday, overturning a €1.49 billion ($1.66 billion) fine imposed by the European Commission in 2019. The fine, levied over antitrust violations, accused Google of abusing its dominance in online search advertising by restricting websites from using advertising brokers other than its AdSense platform. These practices, deemed illegal by the Commission, were said to have spanned from 2006 to 2016.
The General Court of Luxembourg, while agreeing with most of the European Commission’s findings, annulled the hefty fine. The judges ruled that the Commission had not fully considered all factors, particularly the duration of the unfair contractual clauses, which played a critical role in overturning the penalty. Despite the annulment, the ruling upheld many of the Commission’s assessments, but the financial punishment did not hold.
The fine was one of three that have cost Google a combined total of €8.25 billion in antitrust penalties, triggered by complaints from rivals such as Microsoft. Google noted that it had already revised the contracts in question in 2016 before the Commission’s decision.
The legal victory for Google comes just a week after it lost a separate case involving a €2.42 billion fine for unfairly promoting its price comparison service. While the battle over its advertising practices may have seen a favourable outcome, the tech giant’s ongoing legal challenges in Europe reflect the broader scrutiny facing major digital platforms across the continent.
Telecommunications Industry Ireland (TII) advocates a reduction in VAT on internet access services delivered via fibre and 5G fixed wireless access (FWA) from 23% to 13.5%. This proposed cut is designed to support the National Connectivity Strategy’s goals, targeted for achievement by 2028.
Furthermore, TII views this VAT reduction as essential for bridging the digital divide, particularly in rural areas, by making high-speed internet more affordable and ensuring equitable access. Continuous upgrades to telecom infrastructure are also vital for meeting the demands of remote working, online education, and other digital services.
As data traffic surges due to digital transformation and AI adoption, ongoing investment in infrastructure becomes crucial for maintaining Ireland’s competitive edge and realising broader economic and social benefits. On the other hand, Telecommunications Industry Ireland (TII) highlights the significant economic impact of the telecommunications sector.
The sector employs 24,000 people with an annual payroll of €1.6 billion, and it has invested approximately €3.5 billion in network infrastructure over the past five years. Additionally, it contributes €2.7 billion annually to local suppliers. This substantial economic footprint underscores the sector’s critical role in Ireland’s economy and emphasises the necessity for supportive fiscal policies to sustain its growth and investment.
Bitcoin experienced a 4.1% drop between 15th and 16th September, falling to $57,595 after failing to break through the $60,000 resistance level. This decline erased the gains made on 13 September when the price briefly surged to $60,580. While some analysts attributed Bitcoin’s earlier rise to a weakening US dollar and inflows into Bitcoin ETFs, the cryptocurrency has struggled to sustain momentum as traders remain cautious ahead of key economic events, such as the upcoming Federal Reserve interest rate decision.
Investors are closely watching the Federal Open Market Committee (FOMC) meeting on 18 September, where a 0.50% interest rate cut could potentially boost risk on markets like Bitcoin. However, if the Fed opts for a smaller 0.25% cut, it may negatively impact market sentiment, especially with lingering concerns over corporate earnings and China’s economic slowdown. In addition, regulatory pressure has intensified, with the US Securities and Exchange Commission (SEC) expanding its lawsuit against Binance, further weighing on investor confidence.
In the short term, Bitcoin’s price faces both macroeconomic and regulatory challenges. Despite ongoing demand from institutions like MicroStrategy and positive inflows into spot Bitcoin ETFs, investor sentiment has been shaken by a large, dormant Bitcoin address selling $12.7 million worth of BTC and the growing legal scrutiny of major exchanges.
Forty of the world’s top commercial banks have joined a new digital currency pilot known as the Agora project in collaboration with the New York Federal Reserve and several central banks from Europe, Korea, and Japan. The initiative aims to explore the use of tokenised bank deposits and central bank digital currencies (CBDCs) to improve cross-border payment systems. Specifically, it focuses on ‘wholesale’ CBDCs, which are used between banks.
The project will address the complexities of cross-border transactions, such as time zone differences, legal frameworks, and varying regulatory and technical systems. Major banks participating include JPMorgan, HSBC, UBS, and Japan’s MUFG.
Led by the Bank for International Settlements and the Institute of International Finance, Agora differs from another CBDC project called mBridge. It involves central banks from China, Hong Kong, Thailand, the UAE, and Saudi Arabia.
Germany remains confident in Intel’s commitment to building semiconductor plants, despite a two-year delay announced by the US chipmaker. Chancellor Olaf Scholz emphasised the importance of Intel’s project, viewing it as a long-term strategy to enhance Germany’s position in the global semiconductor industry. Scholz made these remarks during a visit to Astana, Kazakhstan.
Intel’s CEO, Pat Gelsinger, revealed the construction pause in Magdeburg as part of broader cost-saving measures. Although German officials acknowledged the delay, they remain optimistic about Intel’s future in the country. Economy Minister Robert Habeck stressed the continued importance of semiconductor production for Germany and Europe.
A disagreement emerged within Germany’s coalition government over the unused subsidies intended for Intel. While the finance ministry favours reallocating the funds to balance the budget, the economy ministry is advocating for reinvestment in the semiconductor industry. Economists also proposed using the funds for tax reform or investment incentives to benefit all companies, not just those receiving political attention.
Scholz confirmed that the government would address how to best allocate the unspent subsidies. Many experts agree that focusing on tax reforms could promote broader business growth across Germany’s industries, ensuring long-term economic stability.
