BBC Set to Strike Content Deal With YouTube, FT Reports

The BBC is planning to produce programmes specifically for YouTube for the first time, as the British public broadcaster looks to diversify revenue streams amid a shift in viewing habits toward online platforms, the Financial Times reported on Friday.

According to the report, the BBC will create tailored shows designed initially for YouTube audiences, which would later also be made available on the broadcaster’s own platforms, including BBC iPlayer and BBC Sounds. The deal could be announced as early as next week, the FT said, citing sources familiar with the plans.

The BBC declined to comment on the report, while Google, which owns YouTube, did not respond to a request for comment outside normal business hours.

The BBC is primarily funded through a licence fee paid by UK households that watch television, allowing its domestic services to remain free of advertising. However, the FT said the YouTube partnership would focus on younger audiences and enable the BBC to generate additional income by running advertisements on content viewed outside Britain.

A limited number of older BBC series may also be made available on YouTube, though this is not expected to be the core of the agreement, the report added.

The move comes as YouTube’s reach in the UK continues to grow. In December, YouTube attracted 51.9 million British viewers, narrowly overtaking the BBC’s 50.8 million, according to Barb Audiences, the UK’s official body for measuring television and video consumption.

Separately, the BBC remains embroiled in legal controversy in the United States. U.S. President Donald Trump is suing the broadcaster for at least $10 billion over the editing of clips from a speech that appeared to suggest he directed supporters to storm the U.S. Capitol on January 6, 2021. The BBC has apologised for the edit, which led to the resignations of its two most senior executives, but has said it will contest the lawsuit and seek its dismissal.

Musk Suffers Setback Over Grok Deepfakes, but Regulatory Battle Continues

Efforts by European regulators to rein in artificial intelligence–generated deepfakes scored a rare early victory this week after xAI moved to curb the creation of sexualized images by its Grok chatbot. Yet officials and legal experts say the wider regulatory fight against AI-driven abuse is far from settled.

xAI said late on Wednesday it had restricted image-editing features for Grok users after the chatbot produced thousands of sexualized images of women and minors, triggering global backlash. The move marked a reversal for billionaire owner Elon Musk, who initially downplayed the controversy.

Regulators say the episode underlines how difficult it is to police AI tools that make the creation of explicit or degrading content fast, cheap and scalable. It is the latest flashpoint between Musk and European authorities, following earlier disputes over election interference, content moderation and free speech on X.

Legal uncertainty remains widespread. Many governments are still refining rules on what constitutes nudity, how consent should be defined in AI-generated content, and whether responsibility lies with users or platforms. “It’s really a grey zone with regards to the creation of nude images,” said Ängla Pändel, a data protection and privacy lawyer at Mannheimer Swartling.

Britain’s media regulator Ofcom welcomed xAI’s decision but said its investigation into Grok remains open. “Our formal investigation remains ongoing,” a spokesperson said, adding that regulators are seeking answers on what went wrong and how safeguards will be strengthened.

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PRESSURE FOR STRONGER ENFORCEMENT
Earlier this month, Grok generated hyper-realistic images of women on X that appeared to digitally “undress” them or place them in degrading scenarios, including some involving minors. Until midweek, Reuters testing found the chatbot could still generate sexualized images privately on request. xAI said it is now blocking such outputs in “jurisdictions where it’s illegal,” without specifying which ones.

Malaysia and Indonesia have imposed temporary bans on Grok, while regulators in the UK, France and Italy launched probes. At the EU level, lawmakers say tougher enforcement is still needed. Christian Democrat MEP Nina Carberry called xAI’s changes a “positive step” but said stronger action under the Digital Services Act is required to stop platforms from sexualizing women and children. A European Commission spokesperson said the bloc would use the DSA’s full enforcement powers if the changes prove ineffective.

Under the UK’s Online Safety Act, sharing intimate images without consent—including AI-generated deepfakes—is a priority offence, said Alexander Brown, a lawyer at Simmons & Simmons. Ofcom can fine companies up to 10% of global revenue or seek court orders to block services in severe cases.

For victims, however, legal remedies remain burdensome. “Taking platforms to court is a really difficult and heavy process,” said Anders Bergsten, another Mannheimer Swartling lawyer, pointing to the emotional toll on those affected.

Deepfakes predate today’s AI boom but were once confined to fringe corners of the internet. Grok’s integration with X gives them unprecedented reach, said U.S. cyber-harassment lawyer Carrie Goldberg. “The frictionless publishing capability enables the deepfakes to spread at scale,” she said.

The EU’s AI Act currently focuses on transparency rather than outright bans for adult deepfakes, while service suspension under the DSA is considered a last resort. Still, political pressure is mounting. UK Prime Minister Keir Starmer welcomed xAI’s move but warned that free speech does not extend to violating consent. “Young women’s images are not public property,” he said, adding that Britain is prepared to strengthen laws further if needed.

China-Led Digital Currency Platform Sees Rapid Growth in Cross-Border Use

Transactions on a China-backed cross-border digital currency platform have surged past $55 billion, signaling growing momentum behind efforts to reduce reliance on dollar-based global payment systems, according to a new report.

Analysis by the Atlantic Council shows that the prototype platform, known as mBridge, has now processed more than 4,000 cross-border transactions. The project is being tested by central banks in China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia.

The cumulative transaction value reached $55.5 billion, representing an increase of roughly 2,500 times since the platform’s early testing phase in 2022. The digital yuan accounted for an estimated 95% of total transaction volume, underlining China’s dominant role in the system.

The digital yuan, also known as e-CNY, remains the world’s largest live central bank digital currency experiment. Recent figures from the People’s Bank of China showed the e-CNY has processed more than 3.4 billion transactions worth around 16.7 trillion yuan ($2.4 trillion), an increase of over 800% compared with 2023.

Chinese state media reported last month that holders of the e-CNY will begin earning interest on balances held in digital wallets or bank accounts later this year, a move widely interpreted as an effort to encourage broader adoption.

“Taken together, these developments point to a gradual expansion of the yuan’s internationalization through digital infrastructure,” said Alisha Chhangani, a policy analyst at the Atlantic Council.

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THE RACE IS ON
The rapid progress of mBridge is being closely monitored by policymakers worldwide. The project was originally overseen by the Bank for International Settlements, but the Switzerland-based institution unexpectedly withdrew from the initiative in late 2024.

While not a direct competitor, the BIS has since shifted its focus to a separate cross-border payments project involving seven major central banks, including the Federal Reserve Bank of New York, the European Central Bank (via the Banque de France), the Bank of Japan, Swiss National Bank and Bank of England. That group said this week it is accelerating testing in collaboration with more than 40 large commercial banks.

Despite that, mBridge remains well ahead in terms of real-world usage. In November, the UAE Ministry of Finance and the Dubai Department of Finance completed the first government transaction using a wholesale digital dirham on the platform.

Chhangani said mBridge is likely to increasingly target trade settlements, particularly in energy and commodities, sectors where China already plays a central commercial role. Rather than directly displacing the U.S. dollar, she said, the platform is creating parallel settlement infrastructure that reduces dependence on existing dollar-based systems.

“Project mBridge is unlikely to challenge dollar dominance outright, but it may incrementally erode it,” she said.

The People’s Bank of China did not immediately respond to requests for comment outside business hours.