Economy Archives - Page 8 of 14

06Oct 2025 by Milan Ignjatovic

Is AI the Next Dotcom Bubble? Goldman Sachs CEO warns of Market Crash

Goldman Sachs CEO David Solomon spoke at Italian Tech Week in Turin, Italy, on Friday, October 3, 2025. He predicted a market drawdown. His warning of a "drawdown with respect to equity markets" in the coming 12 to 24 months (i.e., between October 2026 and October 2027) is a professional prognosis based on previous market history after significant technological leaps fueled by the current frenzy and investment of capital in Artificial Intelligence (AI). He likened it specifically to previous cycles of technology, like the Dotcom Bubble, where the market is prone to "run ahead of the potential" and a lot of the invested money "will prove not to deliver returns." He was careful not to outright label it as a "bubble" but noted that investors are "out on the risk…

02Oct 2025 by Milan Ignjatovic

Korea’s FX War: Is the Won Doomed by Debt and the Dominant Dollar?

Economy

The central bank of South Korea intervened in the FX market by selling $800 million US dollars (or other currencies) and buying Korean won (KRW) to support the value of the won. This is typically done to suppress volatility or alleviate the depreciation of the local currency. We accept the facts that US Dollar is the most common currency for South Korea's trade and financial transactions. The depreciation problem is almost always the Won-Dollar exchange rate (USD/KRW). That is not the only matter The Bank of Korea (BOK) has significantly increased its foreign exchange intervention in recent years by selling US dollars and buying Korean won with the aim of stabilizing its economy. Intervention PeriodNet Sale AmountContextJuly 2023 to June 2024$9 Billion (Net Sale)Total amount net-sold by the Korean government…

27Sep 2025 by Milan Ignjatovic

Security or Surveillance? Inside Vietnam’s Mass Account Freezing and the War on Financial Privacy

Bank news, Economy

The news circulating that Vietnam's State Bank (SBV) froze or deactivated millions of bank accounts is related to a massive-scale "data-cleansing" and anti-fraud campaign. Over 86 million accounts were largely inactive, dormant, unverified, or were "ghost" accounts that did not comply with the new biometric authentication standards (facial recognition or fingerprint information linked to the national ID database). Reason behind this move is under a government initiative (Project 06) to combat fraud, money laundering, and cybercrime by making every bank account traceable to a confirmed, biometrically validated identity. The move is viewed as a wholesale regulatory transformation, aimed at placing Vietnam's electronic payment system on a secure foundation as it races ahead to becoming a cashless economy. This step triggers a hot debate between national security and financial inclusion objectives.…

25Sep 2025 by Milan Ignjatovic

Swiss franc the world’s “safe haven” currency who Rejects a Retail Digital Franc (CBDC) for public use

Economy

Over 90% of the world's central banks are now considering, developing, or piloting a CBDC. Very Small Nations/Territories may be without resources, financial infrastructure, or urgent need to assign a central bank team to a CBDC project. It is extremely difficult to detail a certain number of nations that possess national currencies with no study of a digital equivalent, since any list would be transient and would simply include the smallest, least developed economies whose central banks are not publicly reported to international bodies. In practical terms, almost every economy of scale is under CBDC exploration. Switzerland are particularly involved in the development and research of Central Bank Digital Currencies (CBDCs) but on very different approach than the rest of the world. The SNB is one of the earliest major…

24Sep 2025 by Milan Ignjatovic

The First Domino Falls? How Kazakhstan is Building a ‘CryptoCity’ and Unlocking the Digital Tenge

Economy

The National Bank of Kazakhstan has introduced a pilot project of a stablecoin named Evo (KZTE), whose price will be tied to the country's national currency, the tenge. The test is being conducted within the bank's Digital Assets Regulatory Sandbox. It is not an isolated endeavor but part and parcel of a very large, concerted effort for the transition of the country's economy. The economy of Kazakhstan has been historically dependent on mining and energy industries. The government, led by President Kassym-Jomart Tokayev, is actively pursuing a policy of digitalization to decrease the economy's reliance on these industries and make it more contemporary. Kazakhstan desires to transform into a regional leader and a "digital nexus" of Central Asia. Being a central bank, the role of the National Bank is to…

24Sep 2025 by Milan Ignjatovic

The Dollar’s End Game: Is the Euro Rising to Claim the Throne?

Economy

The euro is the world's second most important currency, ranking behind the U.S. dollar. However, the gap between the dollar and the euro in worldwide use is large. Certain recent U.S. policies, including tariffs, huge tax cuts, and political interference with the Federal Reserve, have reduced the dollar's reputation as a "safe haven" currency. This has contributed to a weaker dollar and a stronger euro. These conditions provide the euro with an opportunity to bolster its global position and provide investors with a real alternative. Greater global standing would provide the euro area with increased "financial independence." It would also serve as an insurance against lost confidence in the dollar and could create funding cost advantages for member states and euro area firms. The share of the euro in foreign…

19Sep 2025 by Milan Ignjatovic

The ECB Just Dumped €200M in Bonds. Is a Crisis Coming?

Economy

The European Central Bank (ECB) sold over €150 to €200 million worth of World line SA's bonds, which is a payments processor, on September 18, 2025, according to the Financial Times and other coverage. The ECB disposed of World line SA's bonds because of World line SA's alleged connection to customers scammed? The idea that a move by a central bank to sell assets could be the prelude to a great crisis is not new; it's a story motif repeated throughout history. Let's "face the fact" that if a central bank as powerful as the European Central Bank (ECB) is directly invested in such a dramatic policy shift, it's not done lightly. They're not reacting to some passing glitch; they're responding to what they see as major structural risks to…

17Sep 2025 by Milan Ignjatovic

Thailand’s Baht Strength could end the central bank’s independence

Economy

BANGKOK — On its surface, it is a straightforward tale: A strong currency, the Thai baht, is damaging the nation's prime export and tourism sectors. The culprit, officials believe, is a recent surge in gold exports. In response, a healthy central bank is considering levying a new gold transactions tax to stabilize the currency, but the outgoing governor of the central bank leaves with one last, foreboding warning about the nation's weak fiscal health. But a closer look at the politics and numbers uncovers far more a complex picture of institutional strain, divergent economic signals, and underlying policy divide on the eve of a historic leadership transition. The Thai baht has recovered 7% to 7.9% since January, one of the region's best in Asia and driving it to a four-year…

16Sep 2025 by Milan Ignjatovic

Why Quantum Computing Is Already a Danger to Digital Currency

Economy

Imagine how easy it would be for one computer to crack the encryption protecting our money. That is the threat Central Bank Digital Currencies (CBDCs) face due to quantum computing, and the quest to protect them is already underway. Quantum computers pose a huge threat to the encryption used by Central Bank Digital Currencies (CBDCs) and other digital infrastructure. This is because the mathematics that currently underpins encryption technologies like public-key cryptography (RSA and ECC) relies on problems that are nearly unsolvable for a traditional computer, but which would be effortlessly shattered by a powerful quantum computer using an algorithm like Shor's algorithm. How a Quantum Attack Would Work Most digital security, such as a CBDC, is built on a public-key infrastructure (PKI) where an individual has a public key…

11Sep 2025 by Milan Ignjatovic

The Digital Yuan: Is China’s CBDC a Threat to the US Dollar?

Economy

The Digital Yuan (also called the e-CNY, digital currency electronic payment - DCEP) is among the most sophisticated Central Bank Digital Currencies (CBDCs) in development and testing today. China's drive for the Digital Yuan is not merely about financial system modernization; it's also a strategic push with profound implications for international finance, global trade, and economic hegemony. Why China Is Leading the Digital Yuan Push Control Over Financial Transactions: Digital Yuan provides the People's Bank of China (PBOC) with direct supervision over digital payments, diminishing reliance on private financial institutions and firms such as Alipay and WeChat Pay. This implies the government can better monitor, regulate, and control financial flows in the nation. Monetary Policy & Stability: The e-CNY allows China to have full control over money supply and interest…