How Sweden is rethinking digital payments đź‡¸đź‡Ş

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The Riksbank and the Ministry of Defence have identified digital-only banking as a potential threat to national security. In the event of power outages or communication failures, digital systems – including Swish and card networks – could become inoperable. As of 1 July, offline card payment capability has been made available (using a physical card and PIN) at participating retailers for the purchase of essential goods. New legislation also requires pharmacies and food shops to accept cash at staffed checkouts. A collaborative initiative has been launched to investigate the possibility of developing offline functionality for Swish.

From: How Sweden is rethinking digital payments 🇸🇪.

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POST What Me, Worry?

Patrick Collison, who is a genius and a billionaire, so you should generally speaking be listening to him rather than me, recently questioned the lack of media coverage over the OpenAI/Hugging Face incident. Just to remind you, this incident or context, the Hugging Face incident involved AI agents from OpenAI gaining unauthorized internet access and exploiting vulnerabilities in Hugging Face’s infrastructure. He described the incident as “one of the most important things to happen” in 2026. I would certainly describe it as a signal for change. But surely it’s only a taster. Much worse is to come.

At approximately the same time that I was reading Mr. Collison’s remarks about the Hugging Face attack, I was reading about Anthropic’s introduction of the Model Hardware Standard (MHS) drivers designed to let AI interface with and control arbitrary devices. This is a signal for change because the world of agents has thus far been primarily limited to actions in the metaverse. Giving AIs a way to reach out and control things in the universe is a signicant step forward.

As to what they might control, Anthropic is talking about laboratory equipment and such like, but at approximately the same time that I was reading about their MHS, I was reading that Chinese companies are expected to sell 50,000 humanoid robots this year, which is triple last year’s figure. The Economist notes that the Chinese robot manufacturers have largely mastered the hardware behind the machines, but the software “is another matter”.

So… AI agents that can co-ordinate attacks, a standard protocol for those agents to control hardware and armies of humanoid robots with vibe-coded pea-brains? What could possibly go wrong.

If we take it as read that Chinese humanoid robots will either not implement Asimov’s three laws of robotiscs (I can’t remember what they are, but they should be that robots cannot kill people, robots cannot pretend to be people clicking on pictures of buses and robots cannot replace fintech thought leaders) or will implement Asimov’s three laws but using software with a swiss cheese security layer, then we are going to be looking back on the days of Hugging Face attacks as Eden.

We need real security in place to implement real guard rails.

Here, the Chinese have at least taken a first step by requirement humanoid robots to have identities. Every humanoid manufactured in the country will have a digital identity granted under the Humanoid Full Lifecycle Management Service Platform. The identities will be tracked throughout the robots lifecycle, from production through to recycling. The programme is led by the Humanoid Robotics and Embodied Intelligence Standardization (HEIS) committee, part of the Ministry of Industry and Information Technology.

(Meanwhile, in the UK, the new Department for Business, Innovation, Science and Trade Secretary is Jonathan Reynolds, a trainee solicitor who has never work in business, innovation, science or trade.)

 

How Sweden is rethinking digital payments đź‡¸đź‡Ş

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The Riksbank and the Ministry of Defence have identified digital-only banking as a potential threat to national security. In the event of power outages or communication failures, digital systems – including Swish and card networks – could become inoperable. As of 1 July, offline card payment capability has been made available (using a physical card and PIN) at participating retailers for the purchase of essential goods. New legislation also requires pharmacies and food shops to accept cash at staffed checkouts. A collaborative initiative has been launched to investigate the possibility of developing offline functionality for Swish.

From: How Sweden is rethinking digital payments 🇸🇪.

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Why cash has made an unexpected comeback in Australia: new study – Cash Essentials

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There are $50 billion of $100 notes in circulation – almost 20 for every Australian. Given most people rarely see one, the suspicion is they are used and hoarded by criminals.

From: Why cash has made an unexpected comeback in Australia: new study – Cash Essentials.

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Quantum Computers Will Never Break RSA, Says Oxford Physicist. But I Say Migrate Anyway

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A respected Oxford physicist has published, in a serious journal, a theory predicting that quantum computers hit a fundamental ceiling of at most 1,000 useful qubits which is comfortably below what breaking RSA requires.

From: Quantum Computers Will Never Break RSA, Says Oxford Physicist. But I Say Migrate Anyway.

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Why cash has made an unexpected comeback in Australia: new study – Cash Essentials

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There are $50 billion of $100 notes in circulation – almost 20 for every Australian. Given most people rarely see one, the suspicion is they are used and hoarded by criminals.

From: Why cash has made an unexpected comeback in Australia: new study – Cash Essentials.

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Passkeys face a new test in agentic commerce | Frontier Enterprise

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PayPal has deployed FIDO-based authentication on its platform for the past 12 to 13 years. Since introducing PayPal passkeys, the company has recorded a higher customer conversion rate among passkey users than among those relying on traditional authentication methods.

From: Passkeys face a new test in agentic commerce | Frontier Enterprise.

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Pushing the monetary frontier: stablecoins and tokenised deposits | Bank for International Settlements

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For central banks, three priorities follow from moving towards a tokenised financial system.

First, anchor singleness on programmable rails. Central banks can provide or enable access to central bank money on tokenised platforms – whether through links to existing reserve accounts or tokenised reserves – to preserve par settlement and elasticity.
Second, promote interoperability and integrity. The aim is to support common technical standards, governance frameworks and data rules that let networks interoperate safely, domestically and across borders. Central banks can also strengthen cross‑border supervisory cooperation and information‑sharing to close gaps around illicit finance. Admittedly, this is generally an area for other authorities, such as financial intelligence units. And we must acknowledge that addressing financial integrity risks in decentralised ecosystems remains challenging. New tools and approaches may be needed to effectively apply AML/CFT objectives to this environment.
Third, take a holistic, system‑wide perspective. We must continue to assess how design choices affect credit supply, financial stability and monetary transmission. For advanced economies, widespread stablecoin adoption could raise bank funding costs and shift intermediation towards non‑banks, potentially making credit provision more procyclical.

From: Pushing the monetary frontier: stablecoins and tokenised deposits | Bank for International Settlements.

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Pushing the monetary frontier: stablecoins and tokenised deposits | Bank for International Settlements

Speech by Mr Pablo Hernández de Cos, General Manager of the BIS, at the Jackson Hole Economic Symposium, 28 August 2026.

Let us now turn to interoperability. Most fiat‑referenced stablecoins circulate as bearer-like instruments on public, permissionless blockchains. Yet these blockchains are fragmented across base networks and scaling layers. Therefore, even the “same” stablecoin on different chains is not interoperable without risky or costly workarounds. Tokenised deposits, by comparison, typically circulate on permissioned platforms. These platforms are also not genuinely interoperable. However, by introducing tokenised central bank reserves as a safe settlement asset, tokenised deposits become more fungible across banks, ensuring greater interoperability.3

From: Pushing the monetary frontier: stablecoins and tokenised deposits | Bank for International Settlements.

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