Session’s Chris McCabe and Alex Linton tell Cointelegraph that AI-integrated devices could bypass messaging encryption, creating privacy and security issues. Artificial intelligence, a lack of awareness of data privacy, and regulatory pressures are among the biggest threats to the future of private messaging, says Alex Linton and Chris McCabe, executives from the decentralized messaging app Session. The EU’s efforts to mandate the scanning of private messages through its Chat Control legislation have been heavily criticized by privacy advocates, but Linton, president of the Session Technology Foundation, told Cointelegraph that AI is another front that needs to be pushed back. AI’s capacity to analyze information on a device and store that data creates “huge privacy issues, huge security issues,” and the ability to communicate privately could basically be rendered “impossible to do on an average mobile phone or an average computer,” Linton said. Read more
Amir Zaidi’s return signals a strengthening of crypto oversight as the agency prepares for new digital asset laws. The key policy maker who oversaw the launch of regulated Bitcoin futures in the US has returned as the Commodities Futures Trading Commission’s chief of staff after a six-year hiatus. In a Wednesday announcement, the CFTC welcomed back Amir Zaidi with chairman Michael Selig emphasizing the wealth of experience Zaidi will bring. “I’m grateful for his willingness to return as chief of staff and for his continued dedication and service to both the CFTC and our stakeholders. Amir was instrumental in the historic launch of CFTC-regulated bitcoin futures contracts during President Trump’s first term,” Selig said. Read more
Only three CBDCs have been successfully launched around the world so far, in Nigeria, the Bahamas and Jamaica, although many jurisdictions are considering it. The Reserve Bank of India has urged countries to focus on central bank digital currencies over privately-issued stablecoins, citing concerns about financial stability. In its December financial stability report, released on Wednesday, the RBI argued that CBDCs preserve the “singleness of money and the integrity of the financial system,” and should remain as the “ultimate settlement asset” and the “anchor for trust in money.” “The RBI, therefore, strongly advocates that countries should prioritise central bank digital currencies over privately issued stablecoins to maintain trust in money, preserve financial stability and design next generation payments infrastructure that is faster, cheaper and secure.” Read more
US Representative Warren Davidson said the stablecoin-focused GENIUS Act may backfire on Americans by stripping them of their financial freedom and privacy. US Representative Warren Davidson warns the US is drifting toward a permissioned and heavily surveilled financial system, arguing that recent crypto legislation undermines the industry’s original promise of permissionless, private money. In a post on X on Wednesday, Davidson criticized the stablecoin-focused GENIUS Act, arguing it enables a wholesale version of a US dollar central bank digital currency (CBDC) that could be used for “surveillance, coercion, and control.” He also fears a digital ID system will be rolled out that forces Americans to get government permission to use their own money. Read more