Deepseek shifts AI race into higher gear.

ECB accelerates digital euro plans in response to Trump’s crypto push.

The European Central Bank (ECB) is looking to speed up the development of a digital euro to counter the growing influence of dollar-backed stablecoins. Trump has openly supported private-sector stablecoins while blocking plans for a U.S. central bank digital currency (CBDC). European banks fear that the dominance of dollar stablecoins could divert transactions and capital flows away from the traditional banking system.

With a digital euro, the ECB aims to provide a central bank-backed alternative. Banks would manage digital wallets that allow both individuals and businesses to transact seamlessly. The goal is to prevent Europe from becoming too dependent on private-sector stablecoins.

The ECB is currently assessing the technical and regulatory feasibility, but the final decision rests with European policymakers. The race for digital money is heating up – and Europe doesn’t want to be left behind.

Trump memecoin grabs attention but fails to bring fresh money into crypto.

The launch of a Trump-inspired memecoin has generated plenty of buzz but has failed to attract new investors to the crypto market. While the token quickly reached a high market valuation, the capital appears to be coming mainly from existing crypto traders capitalizing on the hype.

Analysts describe this as a classic case of capital rotation within the sector rather than fresh money entering the market. This means the broader crypto market sees little benefit from the memecoin frenzy. Sustainable growth requires more than just speculation – it needs a structural influx of new capital, which remains absent for now.

Memecoins can create short-term excitement, but they are not a fundamental driver of a long-term bull market. In the end, crypto needs to focus on adoption and real-world use cases to attract new investors.

Deepseek shakes up the AI market and tech stocks.

Chinese AI company Deepseek has sent shockwaves through the market with the launch of Deepseek R1, an open-source AI model that rivals top-tier AI models in performance while operating at a fraction of the cost. This disrupts the existing AI landscape, where billions have been poured into expensive AI infrastructure.

Investors reacted immediately. Shares of major AI companies, including NVIDIA, took a hit amid concerns that more efficient and cost-effective AI models could challenge their dominance. NVIDIA, which derives a significant portion of its revenue from selling high-performance AI chips, saw its stock decline as demand for expensive hardware could weaken. Other tech giants with heavy AI exposure, such as Microsoft and Google, also experienced downward pressure.

The release of Deepseek R1 forces the market to rethink AI models and their economic impact. Until now, AI has been dominated by companies with massive computing power and capital. Deepseek suggests the future may belong to more efficient and accessible alternatives. In the long run, this could even benefit AI-crypto, as decentralized AI models stand to gain from open-source innovations like Deepseek.