News related to
Ardi

China is reportedly on the brink of a significant policy shift that may see the introduction of yuan-backed stablecoins, a move designed to bolster the international standing of its currency. With global financial markets increasingly leaning towards digital currencies, Beijing’s latest plan could mark a pivotal moment in the international adoption of the yuan.

The Chinese government is set to consider a proposal to allow the issuance of stablecoins pegged to the yuan, which would aim to challenge the dominance of the US dollar and its associated stablecoins in global markets. The proposal, expected to be reviewed by the State Council, reflects Beijing’s ongoing strategy to expand the yuan’s reach beyond its traditional borders, positioning it as a competitor to the greenback.

As part of its broader push for digital currency integration, China could allow key financial hubs such as Hong Kong and Shanghai to be the first to implement the new stablecoin systems. These cities are already at the forefront of China’s broader efforts to foster the growth of digital currencies, and the stablecoin initiative could further solidify their roles as global financial centres.

Discussions surrounding the adoption of yuan-backed stablecoins are expected to feature prominently during high-level meetings, including the upcoming Shanghai Cooperation Organisation Summit. This gathering will provide an important platform for Chinese leaders to outline their vision for the future of digital currencies, while signalling their intent to shape international policy on the use of stablecoins.

The planned move is in direct contrast to China’s earlier stance on cryptocurrency regulation. In recent years, the country has imposed strict measures on the use of private cryptocurrencies, citing concerns about financial stability and capital outflows. The proposed policy reversal regarding stablecoins marks a dramatic shift in strategy, moving from a position of stringent control to one of potential global leadership in digital currency innovation.

Stablecoins, which are digital currencies pegged to stable assets like fiat currencies or commodities, have become increasingly popular among investors seeking to minimise volatility. In particular, US dollar-backed stablecoins have grown exponentially, with major players like Tether and USD Coin dominating the market. The success of these assets has prompted China to explore ways in which the yuan can gain a similar foothold in the emerging digital economy.

By introducing a yuan-backed stablecoin, China would not only be promoting its digital currency but also attempting to influence how digital currencies are adopted globally. The move could significantly shift the dynamics of international trade and finance, particularly in Asia. As countries continue to look for alternatives to US dollar-dominated systems, China’s push for a digital yuan is increasingly seen as a strategic move to improve its influence over global financial markets.

Key stakeholders in the financial sector have already begun to take notice of China’s evolving stance on digital currencies. Financial institutions operating in Hong Kong and Shanghai are expected to play an integral role in the rollout of yuan-backed stablecoins, with implications for both domestic and cross-border transactions. Additionally, blockchain technology providers are closely monitoring developments in this space, anticipating a surge in demand for stablecoin-related infrastructure as China accelerates its digital currency ambitions.

The anticipated approval of yuan-backed stablecoins would also contribute to the development of China’s central bank digital currency, the digital yuan. While the digital yuan has already been tested in select regions, the integration of stablecoins would expand the use of digital yuan products, making it more accessible to international markets. This could significantly enhance the usability of China’s digital assets, providing a stable, digital alternative to traditional fiat currencies for global trade and investment.

At the same time, China’s global competitors, particularly the United States and the European Union, are likely to view this move with caution. While the yuan-backed stablecoin could disrupt traditional financial systems, it could also prompt a race to establish new regulatory frameworks and digital currencies to safeguard the dominance of the US dollar and the euro in global markets.

Singapore’s ride-hailing users faced a shocking experience when prices on the city’s most popular platform surged to extreme levels on Wednesday, sending customers scrambling for alternatives. Short city trips, which would usually cost under $20, suddenly reached exorbitant amounts, with some fares topping $1,000.

The issue, which quickly sparked outrage on social media, left passengers frustrated as they found themselves unable to hail rides at normal prices. Riders who had previously paid modest amounts for regular trips saw the price skyrocketing, even for short journeys. Users on the platform reported that standard fares for routes that would normally cost $15-$30 were now being quoted at prices between $800 and $1,500, leaving commuters bewildered.

Industry experts noted that this incident was linked to an algorithmic malfunction, although it remained unclear whether it was a bug in the system or an error in fare calculation. The company involved, which operates one of the two main ride-hailing apps in Singapore, confirmed that it had encountered a “technical issue” that temporarily inflated prices across the platform. “We deeply regret the inconvenience caused and are investigating the matter thoroughly,” a spokesperson stated.

The spike in prices comes amid growing concern over fare surges, which have sparked criticism in major cities worldwide. In Singapore, where ride-hailing services have become a crucial part of the transport ecosystem, users were quick to voice their dissatisfaction. “I thought it was a mistake when I saw the fare,” one commuter stated. “How can a short ride within the city cost that much? This is absurd.”

This isn’t the first time Singaporeans have experienced such problems with ride-hailing services. However, it marks one of the most extreme examples of price inflation to date. Many users are now questioning the reliability and transparency of surge pricing, especially after a situation that saw a substantial number of riders either canceling or refusing to take the overcharged rides.

The price surge also raised questions about the regulatory landscape surrounding ride-hailing services. Authorities have been under increasing pressure to implement more stringent measures to protect consumers from unpredictable fare increases. At the same time, the ride-hailing companies are caught in a delicate balance between maximising their profits during peak demand and ensuring fairness and transparency for users.

Experts suggested that the surge in prices was exacerbated by a combination of high demand, driver shortages, and an unforeseen technical glitch. Ride-hailing platforms in Singapore are known for implementing surge pricing during periods of high demand, such as during rainstorms or rush hour. While surge pricing is a standard practice in the industry, a dramatic spike to over a thousand dollars without any prior indication raised concerns over fairness and consumer trust.

Passenger frustration was compounded by the lack of clear communication from the company. Many users noted that the platform did not offer any explanation regarding the reason behind the surge at the time of booking, and they were only informed about the issue after a ride had been requested. The lack of transparency only fuelled the ire of many riders, who felt the platform should have been more proactive in addressing the problem.

Public reaction has also been swift. Social media was flooded with comments from irate customers, with some users demanding that ride-hailing companies be held accountable for the price hikes. “I rely on this service every day, but now I’m seriously reconsidering if I can trust them again,” one customer commented on a popular online forum. Others pointed out that such fare hikes could make daily commutes unaffordable for the average person.

As the investigation into the cause of the price surge continues, many are calling for more regulatory oversight on the tech-driven ride-hailing industry. Singapore’s Land Transport Authority, which has previously faced questions over its ability to regulate the sector, has yet to release a statement addressing the situation. The LTA has been under scrutiny for its handling of the evolving ride-hailing landscape, especially regarding the oversight of surge pricing models.

Backpack Exchange, a leading digital asset platform, has announced the launch of daily Proof of Reserves audits, marking a significant step in promoting transparency and security within the cryptocurrency exchange space. This move, verified by cybersecurity firm OtterSec, aims to provide users with real-time assurance that the exchange maintains more than enough reserves to cover all customer deposits.

The PoR initiative is part of a broader effort by cryptocurrency platforms to rebuild trust after a series of high-profile exchange collapses. These audits will detail the reserve ratio, with Backpack Exchange’s current reserve ratio standing at 100.42%. This indicates that for every unit of cryptocurrency held in customer accounts, the exchange holds an equivalent amount and more, ensuring liquidity and solvency.

The verification process, carried out by OtterSec, involves rigorous checks on Backpack Exchange’s crypto holdings and liabilities. This third-party validation is designed to increase investor confidence by ensuring that the platform does not engage in risky lending practices or operate with insufficient backing. The daily audits will be publicly accessible, allowing users to independently verify the platform’s financial stability.

This move comes as part of a growing trend in the cryptocurrency industry, where exchanges are being pressed to adopt higher standards of transparency in the wake of the collapse of firms like FTX and Celsius. These platforms were accused of operating with insufficient reserves and failing to disclose critical financial information to users and regulators. In response, many exchanges, including Backpack Exchange, are now taking proactive steps to restore credibility and accountability.

One of the major concerns that has plagued the crypto industry is the lack of clear regulation and oversight. While governments around the world have begun to implement new laws to protect investors, many exchanges have faced criticism for not providing enough information about their financial operations. Backpack Exchange’s decision to make PoR a daily practice is an attempt to address this concern directly, giving users the tools they need to assess the health of the platform without relying solely on regulatory bodies.

While the PoR audits provide an additional layer of transparency, experts caution that these measures should be viewed as part of a broader effort to ensure that exchanges operate within a secure and well-regulated framework. “Proof of reserves is important, but it does not guarantee the absence of other risks, such as fraud or mismanagement,” says Laura Tan, a blockchain security expert. “It is crucial that exchanges continue to improve their operational practices, beyond just audits, to protect users.”

The timing of Backpack Exchange’s announcement is also noteworthy, as it comes amid increasing scrutiny from both regulators and the public. In many jurisdictions, regulators are seeking to enforce stricter compliance requirements on cryptocurrency exchanges, including mandatory audits and greater financial disclosures. This trend is part of a larger push for comprehensive regulation in the crypto space, aimed at reducing market manipulation, fraud, and investor losses.

Despite the growing regulatory pressure, the cryptocurrency industry remains largely self-regulated, with few standardized practices for exchanges to follow. As a result, platforms like Backpack Exchange that adopt self-imposed transparency measures may set the bar for others to follow. Experts believe that this trend could encourage further innovation in the space, driving exchanges to develop new methods of ensuring financial integrity and user protection.

Another key benefit of daily PoR is its potential to deter malicious actors. By making the platform’s reserve status publicly available, Backpack Exchange creates an environment where any attempt to manipulate reserves would be immediately apparent. This level of visibility can help prevent fraud and instil confidence among users, knowing that they can rely on independent verification of the platform’s solvency at any given moment.

The decision to implement daily audits reflects a growing recognition that the cryptocurrency market must evolve to attract and retain mainstream investors. Institutional investors, in particular, have been cautious about entering the market due to concerns about security and transparency. With daily PoR audits, Backpack Exchange may be positioning itself as a more secure and trustworthy platform, appealing to both retail and institutional traders.

This transparency initiative also places significant pressure on other exchanges to adopt similar measures. As the market matures and regulatory bodies continue to apply pressure, exchanges that fail to provide adequate transparency or secure user funds may struggle to compete. Backpack Exchange’s early adoption of daily PoR audits could set a new standard for transparency in the crypto industry, raising the bar for exchanges across the board.

A bold partnership between the Central Bank of the UAE and Presight, the AI arm of G42, is unfolding a new era in financial infrastructure. The joint venture will embed artificial intelligence across core systems – spanning digital currency, instant and real-time payments, card services and open finance platforms – designed, built, and managed within the UAE. The agreement places AI at the heart of systems such as the Central Bank Digital Currency, Instant Payments, Domestic Card Scheme, National Card Switch, Real-Time Gross Settlement, and Open Finance network.

The initiative underpins the Financial Infrastructure Transformation Programme, a sweeping architectural modernisation blueprint launched by CBUAE in February 2023, with full deployment anticipated by 2026. Where CBUAE once relied on external vendors for supervisory technology and data systems, the new venture shifts toward a sovereign, AI-driven approach.

Ebrahim Obaid Al Zaabi, Assistant Governor for Monetary Policy and Financial Stability, characterised the venture as a strategic move “to ensure the UAE’s financial market infrastructure remains resilient, secure, efficient and future-ready.” He also noted that merging FIT’s leadership with Presight’s technological prowess will reinforce the UAE’s financial ecosystem and underpin national economic stability, strengthening its position as a global financial centre.

Thomas Pramotedham, Chief Executive of Presight, described the venture as a “decisive leap forward,” stating that by “focusing exclusively on AI-driven financial solutions, we are creating a sovereign finance technology powerhouse that will redefine how financial markets operate—faster, with applied intelligence, and more securely than ever before.”

Already, FIT has delivered functional platforms like Instant Payments and the Jaywan card scheme, with CBDC infrastructure currently under development. The venture now takes over these critical functions — charged with developing, maintaining and safeguarding them under a sovereign, AI-backed framework.

Beyond financial rails, this AI integration offers promise across several performance benchmarks: settlement speed, fraud detection, transparency, and cost efficiency all stand to improve. These enhancements align with broader technological sovereignty goals: reducing dependence on foreign providers, enhancing cybersecurity responsiveness, and supporting fintech innovation with locally administered smart infrastructure.

In a parallel development, the Emirates Institute of Finance’s Innovation Hub has entered into a Memorandum of Understanding with HSBC, Al Maryah Community Bank, Presight, and Core42 to explore applications of both traditional and generative AI across banking. The objective is to augment operational efficiency, strengthen cybersecurity, and enrich customer service within the banking sector.

In the broader academic and regulatory sphere, scholars have analysed the transformative potential of AI in finance, alongside its risks: regulatory opacity, bias, data privacy issues, systemic vulnerabilities, and ethical concerns. Recent studies advocate for explainability, human oversight, auditability, and adaptive, principled governance frameworks to safeguard trust while fostering innovation.

By embedding AI at the infrastructure layer, the UAE initiative intersects with these academic prescriptions — though realisation of such ideals will hinge on effective governance, transparency, and operational resilience. As financial systems globalise and grow increasingly complex, ensuring AI’s reliable, accountable implementation will determine whether this model achieves its promise.

Federal lawmakers are grappling with a surge of feedback following the Senate’s release of its discussion draft of the Responsible Financial Innovation Act, aimed at defining the regulatory framework for digital assets. With a compressed input window and wide-ranging submissions from banking associations, regulators and web3 groups, attention has quickly centred on stablecoin interest—an area of mounting concern.

Provisions introduced by the House’s CLARITY Act placed digital assets under Commodity Futures Trading Commission oversight, but the Senate’s RFI Act grants the Securities and Exchange Commission primary regulatory authority over so-called “ancillary assets” while still permitting CFTC consultation on specific rules. The RFI Act also empowers banks to engage in activities such as custody, lending, market-making and even operating blockchain nodes, alongside instructing the SEC to craft a new rule to determine what constitutes an investment contract, potentially supplanting the decades-old Howey Test.

While the SEC-centric approach aims to resolve ambiguity in digital asset regulation, banking groups are alarmed by what they describe as a critical loophole in the GENIUS Act—the stablecoin law recently enacted. Although the GENIUS Act forbade stablecoin issuers themselves from paying interest on token holdings, it does not explicitly block affiliated intermediaries from offering yield-like rewards. This is of particular relevance to Coinbase, which ends its joint issuance role in USDC but still enables clients to earn approximately 4.1 percent via “rewards” on their holdings.

Major banking associations, including the American Bankers Association and the Bank Policy Institute among others, have urged Congress to plug this gap. Their position is clear: yielding through affiliates risks siphoning deposits from traditional banks, potentially destabilising credit provision and triggering deposit outflows that could amount to trillions.

Coinbase disputes accusations of exploiting the loophole, characterising its model as a legitimate separation between issuers and intermediaries. Nonetheless, concerns endure that such practices undercut the intent of the GENIUS Act, which aimed to draw boundaries between stablecoin issuers and banking functions.

Meanwhile, the RFI Act has divided opinion in the Senate. Democratic senators, led by Senator Elizabeth Warren, warn that redefining digital assets as “ancillary” could erode critical investor protections and financial stability. They argue that the bill would weaken the SEC’s regulatory role and expose taxpayer-backed protections such as FDIC insurance to undue risk.

On the industry front, the GENIUS Act did usher in uniform rules for payment stablecoins, mandating full backing with low-risk assets, monthly reserve disclosures, and independent audits—including attestations from CEOs or CFOs. Yet critics caution that the law stops short of safeguarding against systemic threats or conflicts of interest, particularly noting exemptions that may benefit subsidiaries of large tech firms or powerful political figures.

Academic analysis underscores the broader implications: stablecoins are increasingly viewed as pivotal to a new era of banking, often referred to as “Banking 2.0,” given their potential to enhance global transaction speed, reduce fraud and integrate new financial mechanisms—yet they also carry real risks if regulatory gaps persist.

As the Senate culture shifts from discussion to legislation, the RFI Act’s comment deadline—set for 5 August—has crystallised the debate. The responses could shape whether a stablecoin interest ban via intermediaries is codified, and determine the future balance of power between the SEC and CFTC, between innovation and investor protection, and between crypto-enabled finance and the conventional banking system.

The United Arab Emirates’s cloud-seeding programme continues to play a pivotal role in enhancing water resources, generating between 168 million and 838 million cubic metres of extra rainfall annually, of which 84 million to 419 million cubic metres is usable water—significant volumes in a country where the total annual rainfall stands at approximately 6.7 billion cubic metres.

Efforts are particularly intensive in 2025, with 185 cloud-seeding missions already carried out to date, including 39 operations in July alone. These missions, executed using advanced tools such as hygroscopic flares, nanomaterials and electric-charge emitters, aim to raise rainfall by 10 to 25 per cent under favourable conditions.

The programme is backed by a technologically advanced infrastructure. The UAE employs a fleet of four dedicated aircraft, 12 trained pilots, and utilises more than 60 weather stations, an integrated radar network, and the Emirates Weather Enhancement Factory, which produces high-quality seeding flares. With over 900 flight hours each year, the initiative represents a significant operational commitment.

New investments have further enhanced the programme’s precision and effectiveness. The integration of artificial intelligence and machine-learning tools enables real-time analysis of meteorological data, optimising cloud-seeding timing and target areas. Additionally, nano-enhanced flares, with superior rain-inducing capabilities, are being developed and deployed.

Scientific assessment supports the programme’s efficacy. A statistical study comparing historical rainfall data found that cloud seeding has contributed to a 22.8 per cent average increase in annual surface rainfall over seeded zones between 2010 and 2019. Other estimates suggest enhancements of up to 30–35 per cent in clear atmospheres and 10–15 per cent in more humid environments.

On the cost front, cloud seeding remains economical. Harvestable water produced through cloud seeding costs just $0.01 to $0.04 per cubic metre, compared with approximately $0.31 per cubic metre from advanced desalination plants. This makes rain enhancement a compelling supplementary strategy in the face of rising demand and declining groundwater levels.

While cloud seeding bolsters water availability, it does not function in isolation. Broad concerns remain regarding drainage infrastructure, which has demonstrated limitations during extreme rainfall events. For instance, heavy storms in April 2024 overwhelmed urban systems—while some speculated about cloud-seeding’s role, authorities and experts concluded that infrastructure constraints and climate-change-driven weather intensity were the primary causes.

Nevertheless, those involved in the research highlight the programme’s strategic importance. Alya Al Mazroui, Director of the UAEREP, emphasises its growing global recognition and potential applicability in other water-scarce regions. The programme—which is administered under the Ministry of Presidential Affairs and backed by the National Centre of Meteorology—continues to drive innovation in rain enhancement science.