Tag Archives: looms

Quantum computing threat looms over Asia’s financial systems: ‘we are not secure’

Quantum computing threat looms over Asia’s financial systems: ‘we are not secure’

Swathes of Asia’s financial systems are vulnerable to potential disruption from quantum computing technology, including those hosting secure transactions, industry executives have warned.

Only a handful of major economies in the region, such as China, Japan, South Korea and Singapore, have embarked on strategies to safeguard their systems, but most financial institutions across the region are vulnerable to quantum attacks because they are ill prepared, experts say.

The threat looms even as digital wallets and real-time payment systems are widely being used and deeply integrated into the financial systems. Quantum computing is a new branch of processing which can solve complex problems within minutes or hours that might take a classical computer thousands of years to crack.

While it will allow scientists to test and discover new medicines speedily, build climate modelling systems and accelerate scientific research, the system also has the ability to break public-key cryptography or security systems of digital tokens such as bitcoin.

“Asia’s financial systems face an existential threat from quantum computing’s ability to break widely used public-key cryptographic protocols” which underpin digital signatures and enable secure communications, according to Anndy Lian, a Singapore-based intergovernmental blockchain adviser.

Once sufficiently powerful quantum computers emerge – expected within five to 10 years – they could attack stored financial data, forge digital identities and compromise interbank settlements, experts warn.

Such disruptions “could destabilise trust in digital finance”, Lian said.

“In Asean alone, where digital payment adoption is accelerating, the absence of quantum-safe infrastructure leaves trillions of transactions exposed,” he said. “Moreover, the interconnectedness of Asian financial markets means a breach in one jurisdiction could cascade regionally.”

The Asia-Pacific region is poised to become the fastest-growing market for quantum computing, driven by strong government support, significant investments and rapid digital transformation across key countries such as China, Japan, South Korea and India.

Yet regulatory frameworks lagged behind technological developments, with nations in the region lacking a coordinated strategy, Lian said.

Banks in Asia including HSBC, DBS Bank, OCBC and UOB had launched quantum computing initiatives addressing cybersecurity threats and exploring applications in areas such as trading, risk management and fraud detection, industry executives said.

The use of quantum computing across businesses and other applications is expected to become prevalent from the 2030s, according to Alexandra Beckstein, CEO of QAI Ventures, a global venture capital firm focused on quantum technology, which recently established its presence in Singapore.

Banks in the region were worried because passwords might not be safe any more, she said. “Everyone can enter the system, and this will, of course, tremendously damage the capital markets.”

Beckstein predicted that it would be possible to decrypt all the data currently stored in the early 2030s. “So every data you produce right now is potentially prone to threat, so we are not secure now, just because quantum is not happening yet,” she said.

A lot of the banks were currently implementing classical algorithms that would make it harder for a quantum computer to break encryption, she added.

Uneven safeguards

Other industry executives noted, however, that the implementation of security systems across Asia was uneven.

“Asia has bright spots where supervisors and industry are already experimenting with quantum-safe measures, yet region-wide readiness remains nascent,” said Raj Kapoor, founder and chairman of India Blockchain Alliance, noting that most institutions in Asia were only at the stage of building awareness.

According to Kapoor, Singapore is among the most well-prepared countries for the transition to quantum computing in the Asian region, while mainland China has also made significant progress in developing infrastructure. In India and Hong Kong, the momentum is building, but the preparedness is mixed.

But each major Asian market needed to set a clear timetable for developing a common framework to prevent a messy “big-bang switchover”, Kapoor said.

Experts have repeatedly urged the need for greater coordination of cyber policies in Asia, one of the fastest-growing internet markets which has also emerged as a global hotspot for cybercrime.

“Quantum computing will not immediately equip cybercriminals in Southeast Asia with quantum machines, as those remain years away from practical, widespread use. However, it fundamentally alters the threat landscape,” Lian said.

He warned that large-scale quantum computers would expose “vast troves of currently encrypted data”.

“Cybercriminals operating from the region may not wield quantum computers directly, but they will certainly exploit the fallout” by manipulating data decrypted by others, Lian said.

 

Source: https://www.scmp.com/week-asia/economics/article/3330673/quantum-computing-threat-looms-over-asias-financial-systems-we-are-not-secure

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Jackson Hole looms: Can Powell save markets from a global risk meltdown?

Jackson Hole looms: Can Powell save markets from a global risk meltdown?

The global financial landscape presented a picture of cautious stability, with investors navigating a mix of easing geopolitical tensions and lingering uncertainties ahead of the Federal Reserve’s Jackson Hole symposium later in the week. Risk sentiment held steady, buoyed by slight improvements in US fiscal outlooks and a softening of immediate concerns over international conflicts, particularly in Ukraine.

President Donald Trump’s recent affirmations of support for Ukraine, coupled with optimistic remarks about a potential summit between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy, contributed to a modest dip in Brent crude oil prices, which fell 1.2 per cent amid growing hopes for a ceasefire.

This development rippled through energy markets, underscoring how diplomatic signals can swiftly influence commodity valuations in an interconnected world. The broader narrative remained fixated on the Fed’s upcoming gathering, where Chair Jerome Powell’s speech could provide critical clues about interest rate trajectories amid a slowing but resilient US economy.

In the US equity markets, the session unfolded with a tech-led retreat that highlighted vulnerabilities in an index heavily reliant on a handful of megacap names. The S&P 500 closed down 0.59 per cent at around 6414 points, erasing some of the gains from the previous week’s rebound and snapping a brief streak of optimism.

The Nasdaq Composite bore the brunt of the selling pressure, tumbling 1.46 per cent as investors rotated out of high-growth technology stocks amid fresh doubts about the sustainability of the artificial intelligence boom. Nvidia, a bellwether for the sector, plunged 3.5 per cent, dragging down peers and exposing the market’s narrow breadth despite over 350 S&P constituents posting gains; the index’s fate hinged on a few giants.

In contrast, the Dow Jones Industrial Average eked out a marginal 0.02 per cent increase, supported by resilient performances in non-tech sectors like retail, where Home Depot’s earnings provided a lift. This divergence illustrated a market grappling with rotation themes, as value-oriented and cyclical stocks attempted to reclaim ground from the growth darlings that have dominated 2025’s narrative.

Bond markets offered a counterpoint of calm, with US Treasury yields dipping as traders sought safety. The two-year note yield declined two basis points to 3.75 per cent. In comparison, the benchmark 10-year yield fell 3 basis points to 4.30 per cent, reflecting tempered expectations for aggressive Fed tightening in light of recent data showing inflation pressures easing but not vanishing entirely.

Currency and commodity dynamics further painted a picture of measured adjustment rather than outright panic. The US Dollar Index edged up 0.1 per cent, steadying against a basket of peers as investors weighed the implications of a potentially hawkish Fed stance against global growth concerns.

Gold, often a haven in turbulent times, slipped 0.4 per cent, suggesting that immediate fears of escalation were subdued. Brent crude’s decline, driven by those ceasefire prospects, marked a shift from the volatility seen earlier in the year when energy prices spiked on supply disruption fears.

Trump’s reiteration of US backing for Ukraine, while expressing hope for dialogue, added a layer of geopolitical nuance that markets interpreted as de-escalatory, at least for now. These movements came against a backdrop of broader economic indicators, including a mixed bag from China’s data; retail sales slowed to 3.7 per cent in July, while property investment sank 12 per cent. Exports held firm despite US tariff pressures.

Across the Pacific, Asian equities mirrored the global caution, mainly closing lower in a session characterised by narrow ranges and selective buying. Taiwan’s Taiex fell 0.53 per cent, and South Korea’s Kospi dropped 0.81 per cent, reflecting tech sector weakness that echoed the Nasdaq’s woes, given the region’s heavy exposure to semiconductor supply chains. However, India bucked the trend, with the Sensex rising 0.46 per cent on continued momentum from weekend announcements of indirect tax cuts aimed at boosting consumer spending.

These measures, including income tax rebates totalling 1 trillion rupees, have invigorated urban households and supported sectors like retail lending and consumer discretionary goods. Early trading in Asia pointed to further softness, with US equity futures implying a lower open stateside, perpetuating the risk-off tone.

This regional performance aligns with a year where Asian markets have shown resilience amid trade tensions, with valuations remaining attractive compared to developed peers. Asia ex-Japan trades at a discount, offering entry points for long-term investors amid stable inflation and proactive fiscal policies.

The cryptocurrency space, however, stole headlines with Bitcoin’s sharp descent below US$113,000, the first such breach in over two weeks, triggering US$113 million in leveraged long position liquidations and sparking debates about the end of the bull run. From its all-time high of US$124,176 just days prior, BTC’s nine per cent plunge reflected a confluence of factors: profit-taking after a euphoric surge, mounting macroeconomic uncertainties, and a broader risk-off sentiment amplified by Trump’s trade policies and Fed ambiguity.

On-chain data revealed short-term holders selling at losses for the first time since January, with net exchange outflows of 3.4K BTC daily signaling potential capitulation. Analysts like those at The Block noted repositioning ahead of Powell’s Jackson Hole address, while Forbes warned of deeper corrections if support at US$110,530 fails.

Social media buzzed with mixed reactions—some X users viewed it as a healthy reset, others feared a 70 per cent drop to US$23K-US$43K based on bearish RSI divergences. Whales appeared to buy the dip, and ETF inflows of US$17 billion in BTC and ETH over the past 60 days suggested institutional interest persists, potentially cushioning further downside.

Compounding Bitcoin’s woes was news of a US Securities and Exchange Commission probe into Alt5 Sigma, a firm entangled in a US$1.5 billion partnership with Trump-backed World Liberty Financial. The investigation centers on allegations of fraud, stock manipulation, and earnings inflation involving Alt5’s president, Jon Isaac, who claims that surfaced amid insider share sales during price surges.

World Liberty, positioning itself as a DeFi and stablecoin platform with Trump as “co-founder emeritus,” raised US$550 million via token sales, and the former president disclosed US$57.4 million in earnings from his stake. Eric Trump is set to join Alt5’s board, deepening the family’s ties. Alt5 clarified that Isaac is not its president and denied knowledge of any SEC inquiry, but the reports triggered a sharp drop in its stock. This scandal rippled through crypto sentiment, exacerbating the Nasdaq’s 1.5 per cent fall and linking political intrigue to market volatility.

Adding fuel to the tech correction was a sobering MIT NANDA report, revealing that 95 per cent of companies fail to achieve rapid revenue growth from AI pilots, based on 150 corporate interviews and 300 deployments. The study highlighted a “GenAI Divide,” with most efforts stalling due to integration challenges, hesitancy in solo implementations, and over half of 2025 AI budgets funneled into sales and marketing without proportional returns. This revelation triggered sell-offs in AI-linked stocks, amplifying doubts about the hype cycle and contributing to the Nasdaq’s woes.

From my vantage, who has chronicled market cycles for years, this day’s events underscore a pivotal inflection point. The Bitcoin plunge and SEC scrutiny on Trump-linked crypto ventures highlight the perils of intertwining politics with speculative assets. World Liberty’s rapid fundraising and high-profile ties risk amplifying regulatory backlash, potentially eroding trust in an industry still recovering from past scandals. While Trump’s involvement has injected visibility, it also invites scrutiny that could deter mainstream adoption.

On AI, the MIT findings validate growing skepticism about an overhyped revolution; with 95 per cent failure rates, we’re witnessing echoes of past tech bubbles, where promise outpaces delivery. I remain cautiously optimistic: markets have absorbed tariff shocks before, and Asia’s undervalued equities, bolstered by domestic stimulus like India’s tax cuts, offer diversification amid US concentration risks.

The Jackson Hole meeting could catalyse a rebound if Powell signals dovish intent, but investors must brace for volatility. Focusing on fundamentals over frenzy will separate winners from the washout. In a world where geopolitical whispers move billions, resilience lies in balanced portfolios that weather these storms, not chase fleeting highs.

 

Source: https://e27.co/jackson-hole-looms-can-powell-save-markets-from-a-global-risk-meltdown-20250820/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Trump’s trade war looms, but markets are betting on a Fed rate cut

Trump’s trade war looms, but markets are betting on a Fed rate cut

Recent developments, including softer-than-expected US inflation data, expectations of Federal Reserve rate cuts, and ongoing trade policy uncertainties, have driven a notable improvement in global risk sentiment. Meanwhile, political pressures on Federal Reserve Chair Jerome Powell, a robust Wall Street rally, and significant movements in cryptocurrencies like Bitcoin and Ethereum highlight the multifaceted nature of today’s markets.

The US economy remains at the forefront of global financial discussions, particularly following July’s softer-than-expected inflation data. This development has fuelled expectations of a Federal Reserve rate cut in September, as inflationary pressures from President Donald Trump’s tariff policies have not yet fully materialised. Inflation, a key metric for central banks worldwide, has been a persistent concern since the post-COVID-19 price spikes.

The Consumer Price Index (CPI), a primary measure of inflation, has shown signs of moderation, with recent readings suggesting that price pressures are easing. This has led investors to anticipate a more accommodative monetary policy from the Federal Reserve, which could lower borrowing costs and stimulate economic activity.

Goldman Sachs economists, for instance, have revised their forecasts, predicting a potential rate cut in September, three months earlier than previously expected, with a terminal fed funds rate of 3-3.25 per cent by 2026. This shift reflects a belief that tariffs may have a one-time effect on price levels rather than sustained inflationary pressure, coupled with signs of a softening labour market.

However, the Federal Reserve’s cautious approach underscores the uncertainty surrounding trade policies. President Trump’s tariffs, which include a 25 per cent duty on goods from Mexico and Canada and doubled tariffs on Chinese imports, have raised concerns about potential price increases. Fed Chair Jerome Powell has emphasised the need to “wait and learn more” about the tariffs’ impact on inflation before adjusting rates, a stance that has drawn significant criticism from the Trump administration.

Powell has acknowledged that tariffs have contributed to recent price increases, with retailers likely to pass on higher costs to consumers as pre-tariff inventories deplete. Despite these concerns, the Treasury Department, led by Secretary Scott Bessent, has downplayed the consumer impact, citing only a modest 0.1 per cent uptick in prices and highlighting record tariff revenues of US$23 billion in May. This revenue surge underscores the fiscal implications of tariffs, which have generated nearly US$100 billion this year, though businesses have borne much of the cost so far.

The political pressure on Powell has intensified, with Trump publicly considering a “major lawsuit” against him, accusing the Fed Chair of slow-walking rate cuts due to misplaced fears of tariff-driven inflation. Additionally, a referral by Rep. Anna Paulina Luna to the Department of Justice, alleging perjury by Powell over the Fed’s headquarters renovation, has added to the political overhang. These developments have raised concerns about the Federal Reserve’s independence, a cornerstone of effective monetary policy.

Investors worry that political interference could undermine the Fed’s ability to make data-driven decisions, potentially destabilising markets. The US Dollar Index, which measures the dollar against a basket of major currencies, weakened by 0.4 per cent following the inflation data and reports of Trump’s plan to nominate EJ Antoni to lead the Bureau of Labor Statistics. This nomination could signal a shift toward more administration-aligned economic reporting, further complicating the Fed’s policy landscape.

Despite these uncertainties, Wall Street has experienced a robust rally, with the S&P 500 gaining one per cent, the NASDAQ climbing 1.4 per cent, and the Dow Jones rising 1.1 per cent. The communications and information technology sectors have been key drivers, reflecting investor optimism about economic resilience and technological innovation.

The S&P 500’s recent highs mark a recovery from a 10 per cent correction earlier this year, triggered by tariff-related fears. US treasuries, meanwhile, have shown mixed performance, with front-end yields declining and long-end yields rising, resulting in a steepening yield curve. This dynamic suggests that investors anticipate stronger economic growth in the longer term, possibly driven by fiscal stimulus or reduced regulatory burdens under the Trump administration. The decline in the 10-year Treasury yield to 4.40 per cent reflects growing demand for safer assets amid trade tensions and geopolitical uncertainties.

In the commodities market, gold has remained largely unchanged at US$3,347 per ounce, maintaining its status as a safe-haven asset despite improved risk sentiment. Brent crude, on the other hand, fell 0.77 per cent to US$66 per barrel, reflecting a lack of significant catalysts and subdued demand expectations. The interplay between these commodities and broader market trends highlights the delicate balance between inflationary pressures and growth concerns. Gold’s stability suggests that investors are hedging against potential volatility, while the decline in oil prices points to weaker global demand, particularly in light of trade uncertainties.

In Asia, the Reserve Bank of Australia (RBA) has taken a dovish stance, lowering its policy rate by 25 basis points to 3.60%, marking its third rate cut this year. This move reflects easing inflation concerns and a shift in focus toward global trade and demand risks. Asian equity markets have responded positively, buoyed by Trump’s extension of the US-China trade truce and confirmation that gold imports will remain tariff-free. These developments have alleviated some concerns about trade disruptions, contributing to gains in Asian indices and a positive start to today’s trading session. US equity futures, however, suggest a mixed opening, indicating that investors remain cautious about the broader economic outlook.

The cryptocurrency market has also been a focal point, with Bitcoin retesting US$122,000 before pulling back to US$119,053. This rally reflects renewed investor enthusiasm, driven by broader market optimism and significant institutional activity. Binance’s dominance in global trading volume is a critical metric, as concentrated activity on a single exchange could signal limited market breadth, potentially undermining the sustainability of the rally.

Historical comparisons suggest that broader market participation is essential for sustained price gains at all-time highs. Meanwhile, Ethereum has surged over seven per cent to above US$4,500, fuelled by significant institutional adoption and capital flows. The Ethereum Foundation’s sale of 2,795 ETH, valued at US$12.7 million, has drawn attention, particularly as it coincides with ether’s strong price momentum. The wallet, linked to the “EF 1” address, now holds 99.9 ETH and 11.6 million DAI, reflecting a strategic move to lock in gains during the price surge.

Corporate adoption of Ethereum has further bolstered its performance, with companies like SharpLink Gaming and BitMine holding nearly US$9 billion in ETH. BitMine, under the leadership of chairman Tom Lee, has transitioned from Bitcoin mining to an Ethereum treasury, with holdings exceeding US$5 billion. Lee’s ambitious plan to raise US$20 billion to acquire more Ethereum underscores the growing institutional confidence in the cryptocurrency.

Spot Ethereum exchange-traded funds (ETFs) have also seen record inflows, with over US$1 billion in daily net inflows on Monday, marking a significant milestone since their debut. These developments highlight Ethereum’s outperformance of Bitcoin in year-to-date gains, driven by its utility in decentralised finance and institutional backing.

The broader economic and market environment remains fraught with uncertainty. Trump’s tariff policies, while generating significant revenue, pose risks to consumer prices and global trade dynamics. The Federal Reserve’s cautious stance reflects a delicate balancing act between fostering economic growth and containing inflation.

Political pressures on the Fed, combined with leadership transitions looming in 2026, could further complicate monetary policy. Meanwhile, the resilience of US equity markets and the surge in cryptocurrencies suggest that investors are navigating these uncertainties with a mix of optimism and caution.

In my view, the current improvement in global risk sentiment is a fragile one, heavily contingent on the trajectory of US monetary policy and trade negotiations. The Federal Reserve’s data-dependent approach is prudent, given the potential for tariffs to reignite inflationary pressures. Political interference in central bank operations risks undermining market confidence and could lead to volatility if not carefully managed.

The strength in equity markets, particularly in technology and communications, reflects the transformative potential of innovation, but valuations may be stretched if economic growth falters. Cryptocurrencies, while benefiting from institutional adoption, face risks of overheating, particularly if trading activity remains concentrated on platforms like Binance. The RBA’s rate cut and Asia’s positive response to trade truce extensions highlight the global ripple effects of US policy decisions. Investors should remain vigilant, balancing opportunities in risk assets with hedges like gold to navigate the uncertainties ahead.

 

 

Source: https://e27.co/trumps-trade-war-looms-but-markets-are-betting-on-a-fed-rate-cut-20250813/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j