China’s Central Bank Pushes for Artificial Intelligence Integration in Digital Finance

2025年03月18日

Key Takeaways:

  • Banks might rethink internal systems, leaning on homegrown AI instead of external models.
  • The shift prompts a review of risk methods and compliance practices amid tech updates.
  • Digital finance could see evolving work roles and new training demands as tech adoption grows.

During its annual Technology Work Conference on March 17, the People’s Bank of China (PBOC) outlined its 2025 financial technology agenda, prioritizing the integration of large-scale machine learning models into financial services.

The central bank stressed enhancing cybersecurity, strengthening regulatory governance, and tightening financial technology infrastructure.

It proposed increasing IT capabilities to support regulatory roles while introducing advanced automation in financial processes under controlled conditions.

China Advances Artificial Intelligence Integration in Digital Finance

PBOC officials stated that artificial intelligence technology would improve security, streamline operations, and advance digital finance.

The bank also plans to bolster financial data protections and enhance collaboration on technology standards.

This comes after the November 2024 publication of the Action Plan for Promoting High-Quality Development of Digital Finance, which seeks to align the financial system with China’s broader objectives for the digital economy by 2027.

Following these developments, financial institutions—particularly with players like DeepSeek—have begun integrating artificial intelligence into their services.

Over 20 banks have implemented DeepSeek’s models for fraud detection, business process optimization, and customer service automation.

Financial institutions are applying artificial intelligence to enhance decision-making and improve risk management, reflecting the industry’s broader shift toward automation.

The Agricultural Bank of China, for instance, has introduced a phased rollout of intelligent systems through 2029.

Many institutions prefer developing proprietary models instead of relying on external providers, citing security concerns.

Artificial Intelligence’s Expanding Role in Financial Services

Banks are deploying automation not just for customer service but also in critical areas like risk assessment, fraud detection, and decision-making.

These innovations promise improved efficiency and more precise financial planning.

Industry experts predict that the steady integration of artificial intelligence will gradually reshape traditional banking operations, streamlining procedures and refining strategic approaches.

Amid these shifts, regulators are reinforcing oversight to ensure that financial technologies meet stringent global standards and security requirements.

As the industry adjusts to these developments, readers are invited to reflect on how these changes might influence their own financial decisions and long-term strategies.

Frequently Asked Questions (FAQs):

How might AI integration alter bank staff roles?

Shifting to AI may prompt banks to reassign roles, where employees learn to manage tech outputs while human insight remains essential. This adjustment could lead to new training programs and workflow changes.

What operational challenges could banks face with AI adoption?

Banks face hurdles like integrating advanced tech with outdated systems and adjusting work routines. Ensuring data quality and regulatory alignment might demand a gradual overhaul of operational practices.

Could enhanced AI change how customers interact with digital finance?

Enhanced artificial intelligence may offer a more responsive customer interface and refined personalization, yet users might need to adjust to less human interaction. Overall, banks may see shifts in client engagement methods.

The post China’s Central Bank Pushes for Artificial Intelligence Integration in Digital Finance appeared first on Cryptonews.

SEC considering scrapping Biden-era crypto custody rule: report

2025年03月18日

The U.S. Securities and Exchange Commission is considering rolling back a proposed rule that would impose stricter custody requirements for investment advisors handling cryptocurrencies.  Acting SEC Chair Mark Uyeda announced the potential reversal during an industry conference in San Diego…

Standard Chartered Lowers Ethereum Price Target to $4K, Cites Long-Term Structural Decline

2025年03月18日

Key Takeaways:

  • Structural challenges and rising Layer 2 use fuel renewed market discussions.
  • The focus shifts toward protocol refinements and asset tokenization to adjust investor views.
  • Broader technical debates open new questions on Ethereum’s evolving market role.

Standard Chartered lowered its Ethereum (ETH) price forecast for the end of 2025 to $4,000, down from its previous estimate of $10,000, citing structural weaknesses and increasing competition.

In its latest research report, the bank points to several factors weighing on Ethereum’s long-term outlook, including the growing impact of Layer 2 (L2) solutions and declining dominance relative to Bitcoin.

Ethereum Faces Pressure from Layer 2 Solutions

The report attributes much of Ethereum’s decline to the rapid expansion of Layer 2 solutions, such as Coinbase’s Base, which were designed to improve Ethereum’s scalability but have inadvertently diluted demand for ETH itself.

Instead of supporting ETH’s price, the adoption of L2 networks has shaved off $50 billion from its market capitalization.

Standard Chartered expects this trend to continue, further diminishing Ethereum’s influence.

Ethereum’s ETH/BTC Ratio Projected to Fall Further

The bank also highlights Ethereum’s weakening position relative to Bitcoin.

The ETH/BTC ratio, which measures Ethereum’s value against Bitcoin, is projected to drop to 0.015 by the end of 2027.

This suggests that Ethereum may continue underperforming compared to Bitcoin, reinforcing Bitcoin’s dominance as the leading cryptocurrency.

While Ethereum’s comparative weakness against Bitcoin raises concerns, there remains one area that could stabilize its position.

Tokenizing Real-World Assets (RWAs) Could Stabilize Ethereum

Despite facing structural challenges, Ethereum could retain its 80% share of blockchain security if the tokenization of real-world assets (RWA) accelerates.

However, Standard Chartered suggests that the Ethereum Foundation would need to implement assertive policies to counteract declining demand.

One proposal outlined in the report involves imposing taxes on Layer 2 solutions to redirect value back to Ethereum’s main chain. However, the report considers this approach unlikely.

Buterin Suggests Layer 1 Gas Scaling to Strengthen Ethereum

While Standard Chartered focuses on macroeconomic factors, Ethereum co-founder Vitalik Buterin has proposed technical solutions to strengthen the network.

In a February blog post, Buterin argued that scaling Layer 1 gas fees by approximately ten times could enhance long-term network value, even as L2 solutions continue to grow.

Buterin lists several use cases requiring increased Layer 1 capacity, including enhanced censorship resistance for L2s, efficient cross-L2 transfers, streamlined mass exits, ERC-20 token issuance, keystore wallet operations, and L2 proof submissions.

He contends that expanding L1 gas capacity within the next one to two years could improve Ethereum’s performance, security, and cost efficiency, making the network more resilient amid rising competition.

Rethinking Ethereum’s Trajectory

The revised outlook for Ethereum prompts a reevaluation of what drives value in digital assets.

Structural shifts and technological adjustments now form the foundation of the conversation, steering it toward a more nuanced understanding.

This moment encourages investors to question longstanding assumptions and consider alternative perspectives.

Engaging with these insights can lead to more adaptive strategies in the face of uncertainty.

The narrative is shifting, inviting each participant to contribute to a more informed and reflective investment approach.

Frequently Asked Questions (FAQs)

How might upcoming regulatory shifts affect Ethereum’s prospects?

Changing legal frameworks can alter Ethereum’s appeal by shifting investor risk profiles and cost dynamics. Tightened guidelines may force network upgrades and modify long-term adoption trends, affecting market outlook.

What role does community-driven development play in Ethereum’s future?

An active developer network fuels protocol enhancements that boost efficiency and security. Collaborative coding efforts may introduce unique features, fostering network robustness and diverse user participation.

How might global economic trends influence Ethereum’s valuation?

Global economic shifts, like inflation and interest rate changes, affect crypto investments. These trends can shift market risk profiles and liquidity, clearly influencing Ethereum’s overall valuation.

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