The Fed – In the Shadow of Bank Runs: Lessons from the Silicon Valley Bank Failure and Its Impact on Stablecoins

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Third, smart contracts, such as the one-to-one exchange facilities backing Dai, can create interlinkages between DeFi participants. Such facilities can be created at the discretion of any individual participant and operate autonomously. Without appropriate consideration of the risks posed to the wider ecosystem, these interlinkages can channel and amplify contagion.

This paper provides a detailed account of how SVB’s failure affected USDC and other stablecoins during March 2023. Our account is backed by granular data on both the primary and secondary market activities of the affected stablecoins.

From: The Fed – In the Shadow of Bank Runs: Lessons from the Silicon Valley Bank Failure and Its Impact on Stablecoins.

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The Credit Card AI Crime Wave, and How to Fight Back in 2026 – The Financial Brand

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The Federal Trade Commission reported a staggering $12.5 billion in consumer fraud losses in 2024 — a 25% increase over the previous year… While younger populations fall victim more frequently, the financial severity of the loss is significantly higher for seniors.

From: The Credit Card AI Crime Wave, and How to Fight Back in 2026 – The Financial Brand.

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Anti-fraud law sparks ‘dramatic fall’ in new company registrations

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The legislation means acting as a director without being verified has become a criminal offence.

The rules, also being phased in for existing owners and directors over the next year, are intended to ensure that “people setting up, running and controlling companies are who they say they are”. It follows longstanding concerns that the register is being abused to facilitate financial crime and money laundering.

From: Anti-fraud law sparks ‘dramatic fall’ in new company registrations.

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POST SpyGPT

 

Writing in the Financial Times, John Thornhill made an interesting point about intelligence, in the sense of competition between nations and their national interests, saying that a key reason why the West won the Cold War is that democracies are better at processing information. In short, lackeys tell their autocrat masters what they want to hear, not what they themselves actually know. So how can democracies retain an edge on autocracy? In a previous age we needed spies, but now we need SpyGPT.

Back in 2023, for reasons that are too complicated to go into, but related to one of my academic positions, I was tasked with preparing a briefing note on the impact of recent developments in AI on open-source intelligence (OSINT) for the Defence Data Research Centre (DDRC). The DDRC is a UK research consortium that focuses on improving how defence organisations use data, especially for artificial intelligence (AI) and data science applications. It aims to tackle both the technical and cultural barriers that stop defence data being exploited effectively by being a centre of excellence for defence data research but the output from the centre is intended to benefit not just defence, but also the wider UK economy by improving data‑driven innovation practices that can transfer to other sectors.

OSINT, which is what John Thornhill wrote about, is about the gathering of open data sources to support decision making. While you can look at it as a category in its own right, it is useful to think about it as a component of the intelligence gathered in other areas, as shown in the picture below. This perspective is based on the Rand work on Second Generation OSINT but I amended the Rand model to pull out cyberintelligence as a separate category covering intelligence activities focused on the collection, validation, exploitation and dissemination of information concerning the threat posed by an adversary in the virtual world.

***Picture****

(There’s nothing secret about this, you won’t be shot for copy and pasting it. I spent some of the early years of my career working for the government, armed forces and NATO so I am perfectly well-acquainted with the rules.)

Developing the briefing note was both interesting and challenging. It was interesting because there is a great body of work on AI in intelligence already out there and I had to get familiar with it quickly in order to structure the briefing note and it was very challenging because the rules around the briefing note were very tight. Remember the old adage attributed to Pascal “I’m sorry I wrote you such a long letter, I didn’t have time write you a short one”.

(As it happens, I ended up presenting the briefing in person to the CTO of the CIA! Life really does take some strange turns sometimes.)

 

In cyberwar, as in business in general, the march of AI means that as B

 

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The fundamental problem is that AI must compress reality into model-legible forms. In this setting, adversaries can exploit the compression. They don’t have to attack the territory; they can attack the map.

From: Agentic AI’s OODA Loop Problem – Schneier on Security.

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AI systems themselves are becoming targets.

As organizations embed AI across products, operations, and workflows, their AI systems have emerged as a new class of assets requiring protection. Organizations need to protect the integrity of their AI models; training data, interaction, and prompting interfaces; and agentic tools

From: AI Is Raising the Stakes in Cybersecurity | BCG.

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adversaries will switch from attacking the territory to attacking the map.

 

Broadly speaking, my conclusions at the time were that

Predicting Prediction Markets Is a Tough Call — The Information

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While the Trump family is creating its own prediction market, it also has close ties to the industry’s big players. Donald Trump Jr. is an adviser to both Kalshi and Polymarket. Earlier this year, 1789 Capital, an investment firm backed by the president’s family, put money into Polymarket. The prediction market in October also got an investment worth up to $2 billion from the Intercontinental Exchange, which owns the New York Stock Exchange. The wife of ICE’s chief executive is a member of the Trump administration. 

From: Predicting Prediction Markets Is a Tough Call — The Information.

xxxCoinbase CEO Brian Armstrong effectively manipulated one market during  his company’s earnings call in October. Before the call, bettors were predicting whether Armstrong would say words such as bitcoin, ethereum, blockchain, staking and web3. At the end of the call, Armstrong read out a list of all of the words, creating immediate winners and losers in that market. He said he had been watching the prediction markets during the call. 

Subscription overload is exhausting Americans

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For sellers, the subscription economy has distinct advantages. Monthly and annual fees create recurring revenue streams that reassure shareholders and can be securitised to cover debt. A system of multiple small payments also makes it hard for consumers to figure out exactly how much they are spending and with whom.

But the numbers certainly add up. One recent survey, by the tech site CNET, found that the average US adult spends $1,080 a year on subscriptions, including $205 on unused services. Other estimates run as high as $2,600.

From: Subscription overload is exhausting Americans.

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The Geometry of Fintech – by Pete Townsend

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I was moderating a panel at the ABN AMRO + Techstars Future of Finance Accelerator Demo Day, immediately after a keynote by David Birch. Dave made a statement that stopped me in my tracks:

“AI will become the dominant user of stablecoins.”

At first glance, that sounds provocative. Maybe even theoretical.

But the more I sat with it – especially while watching nine finely tuned fintech pitches back-to-back – the more it started to feel… inevitable.

From: The Geometry of Fintech – by Pete Townsend.

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Why European APMs Need More Than Apple’s NFC to Win In-Store Payments

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European alternative payment methods (APMs) have a long history of failed attempts to succeed at the physical point of sale (POS). In contrast, Apple Pay has achieved tremendous success. Apple’s tight control over the iPhone’s NFC chip has fueled iOS’s dominance in contactless payments (see Figure 1) while blocking APMs from delivering a comparable user experience (UX). A regulatory push by the EU has now forced Apple to open NFC access, giving European APMs a new opportunity to compete in-store.

However, NFC access alone is unlikely to guarantee success. Even if other wallets match Apple Pay’s UX, they still face major hurdles: achieving broad merchant acceptance and convincing users to switch their default mobile wallet. In this article, we review European APMs’ historical attempts to gain traction in-store and analyze early initiatives and adoption barriers they must overcome to succeed at the POS.

From: Why European APMs Need More Than Apple’s NFC to Win In-Store Payments.

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Emberpay

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