Bank of England Pushes Decision on Digital Pound to 2025 or Later

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The Bank of England (BoE) announced on Tuesday that no decision will be made for at least two years regarding the introduction of a central bank digital currency (CBDC) for the British public. This effectively delays the timeline for the so-called “digital pound,” a project initially championed by former Prime Minister Rishi Sunak during his tenure as finance minister in 2021.

While the idea of a digital pound gained early momentum, public consultations revealed widespread concerns about privacy, leading to a more cautious approach by the BoE and the current government. In October, BoE Governor Andrew Bailey expressed skepticism about the necessity of a digital currency, stating that it was “not my preferred option.” However, he acknowledged that it might become essential if traditional banks fail to provide competitive payment systems compared to less regulated tech companies.

The BoE confirmed it is collaborating with Britain’s finance ministry on exploring a potential design for the digital currency. This work aligns with earlier consultation plans and will take into account broader developments in the payments landscape.

“After completing the design phase over the next couple of years, the Bank and government will evaluate the policy case for a digital pound and decide whether to proceed,” the BoE stated. A decision is not expected before 2025.

The government has stressed that a digital pound would prioritize privacy but would not offer full anonymity, unlike physical cash. Similar to bank accounts and credit card payments, authorities would retain the ability to monitor transactions in cases of suspected money laundering or terrorism financing.

The BoE emphasized that legislation would ensure user privacy protections. “Neither the Bank nor the government could access users’ personal information or control how households and businesses use their money,” the central bank assured.

Macquarie to Invest Up to $5 Billion in Applied Digital’s AI Data Centers

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Australia’s Macquarie Group has committed to investing up to $5 billion in Applied Digital’s high-performance computing business, acquiring a 15% stake in the company amid surging demand for artificial intelligence (AI) infrastructure. The announcement, made on Tuesday, sent Applied Digital’s shares soaring by 20% in pre-market trading.

Macquarie’s asset management division has initially pledged $900 million to develop a state-of-the-art data center campus in North Dakota. Additionally, Applied Digital retains the right of first refusal to access an additional $4.1 billion in investments for future data center projects over the next 30 months.

Wes Cummins, CEO of Dallas-based Applied Digital, emphasized that the investment ensures sufficient equity to construct cutting-edge data centers capable of handling the high-power demands of AI applications. The company will use the funds to repay debt incurred during the development of its North Dakota facilities and recover over $300 million of its equity investment in the project.

The move comes amid a broader boom in AI-driven investments, spurred by the rapid growth of generative AI models such as ChatGPT. Computing infrastructure providers like Applied Digital have witnessed substantial interest from businesses seeking to develop their own AI models and gain a competitive edge.

In line with this trend, Microsoft recently announced plans to allocate $80 billion in fiscal 2025 to AI data centers, reflecting the growing computational needs of the industry.

Applied Digital has seen its shares triple over the past two years as investors bet on robust growth in AI and data center infrastructure. The company is scheduled to report its second-quarter earnings later on Tuesday.

 

Brazil Challenges Meta’s Hate Speech Policy Changes as Non-Compliant with Local Law

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Brazil’s government expressed “serious concern” on Tuesday over Meta Platforms’ recent changes to its hate speech policy, stating that the modifications do not align with the country’s legal framework. The announcement comes after Meta, which owns Facebook, Instagram, and Threads, reduced restrictions on discussions surrounding sensitive issues such as immigration and gender identity and ended its fact-checking program in the United States.

President Luiz Inácio Lula da Silva had previously criticized Meta’s policy adjustments, calling them “extremely serious.” The Brazilian government has now demanded clarification from the social media giant on its plans. Facebook remains highly influential in Brazil, with approximately 100 million active users, making it one of Meta’s largest markets.

The government did not specify which aspects of Meta’s new policy might violate Brazilian law but warned that the changes could “create fertile ground” for legal breaches, particularly those protecting fundamental rights. Brazil’s legislation prohibits hate speech, including racial slurs and attacks on religious beliefs.

In response, Meta clarified in a letter to the Brazilian government that the recent changes to its fact-checking program were currently limited to the U.S. The company also stated that updates to its community standards primarily affected hate speech policies and were intended to promote greater freedom of expression.

However, Brazil’s Solicitor General’s Office (AGU) criticized Meta’s response, saying that the changes did not adequately comply with Brazil’s legislation or ensure the protection of citizens’ rights. The AGU emphasized that aspects of Meta’s revised hate speech policy, applicable to Brazil, raised “serious concerns.”

Brazil plans to hold a public hearing this week to discuss the implications of Meta’s policy changes with experts. The case recalls a similar instance last year when the Brazilian Supreme Court suspended X’s (formerly Twitter) operations for over a month due to non-compliance with court orders related to hate speech moderation. X’s owner, Elon Musk, initially condemned the court’s actions as censorship but ultimately complied with demands to reinstate operations in the country.

Brazil’s move highlights its commitment to regulating social media platforms and enforcing local laws to protect citizens from harmful content.