October 29th, 2025

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

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

September 28th, 2025

Crypto Isn’t The Real Threat – It’s Regulatory Chaos

The Crypto Crossroads: How Fragmented Regulation Threatens A Global Financial Revolution

Last spring, I was watching a young entrepreneur named Chinedu send $500 to his family in rural countryside using Bitcoin. “This is how I survive,” he said, tapping his phone. “Traditional banks charge too much, and our currency is falling daily.” Just weeks later, I was told he was detained by authorities for operating an unlicensed crypto exchange.

This duality, crypto as both lifeline and liability, defines the global debate.

The Surging Adoption: A Silent Revolution

Between 2023 and 2025, the number of people globally using cryptocurrency has significantly increased. In 2023, there are approximately 420 million people who own cryptocurrency. In 2024, this number grew to 562 million people, and in 2025, the total is estimated to be around 580 million users, potentially reaching as high as 861 million by other reports.

This explosive growth has been driven not by speculative frenzy alone, but by real-world utility: remittances, inflation hedging, and access to financial services for the unbanked. In 2024 alone, global crypto adoption surged by 172%, with India, Nigeria, and Indonesia leading the charge.

The United States and European Union have seen steady growth, but the most dramatic shifts are happening in the Global South.
Nigeria’s 33 million crypto users, the highest per capita in Africa, rely on digital assets to bypass a collapsing currency and banking system.
In Vietnam, peer-to-peer trading volume has exploded as citizens use Bitcoin to shield themselves from inflation and currency controls.
Even in India, where a 30% tax on crypto gains and 1% TDS have created regulatory uncertainty, over 100 million people trade digital assets, a testament to the demand for financial sovereignty.

The numbers tell a clear story: crypto is no longer a fringe phenomenon. It’s a global movement reshaping how people store value, send money, and access financial services. Yet for every success story, there’s a cautionary tale.

The Regulatory Maze: Progress Amidst Paralysis

A recent report analyzing 24 jurisdictions, representing 70% of global crypto exposure, found that 70% made regulatory progress in 2025. But “progress” is a relative term.

While Switzerland’s “Crypto Valley” offers clear frameworks for blockchain businesses, and the UAE’s VARA licenses over 100 firms, the United States remains a fractured landscape where the SEC, CFTC, and state regulators each stake competing claims of jurisdiction. In China, a total ban has driven crypto underground, while El Salvador’s bold Bitcoin-as-legal-tender experiment has faced IMF criticism for its economic risks.

The European Union’s Markets in Crypto-Assets (MiCA) regulation, implemented in 2024, has created a unified framework for stablecoins and asset-referenced tokens. This has attracted firms like Coinbase and Binance to establish European headquarters, but critics argue MiCA’s strict compliance requirements stifle innovation. Meanwhile, the U.S. remains stuck in regulatory limbo. The SEC’s aggressive stance against crypto exchanges has led to lawsuits against giants like Coinbase and Binance, while the CFTC claims authority over Bitcoin as a commodity. This ambiguity has created a “regulatory chill,” where startups avoid the U.S. market entirely.

The UAE, however, has emerged as a model for balanced regulation. Dubai’s Virtual Assets Regulatory Authority (VARA) requires strict AML checks, licensing, and transparency, yet also offers tax incentives and clear guidelines for businesses. As a result, over 100 crypto firms now operate in Dubai, creating thousands of jobs and positioning the UAE as a global crypto hub. This success proves that regulation doesn’t have to mean restriction; it can foster innovation while protecting consumers.

The Double-Edged Sword: Inclusion vs. Instability

Critics argue crypto fuels crime, but data tells a different story: the UN estimates less than 1% of illicit finance involves cryptocurrency, compared to 2-5% in traditional banking. The real danger isn’t the technology, it’s the lack of coherent regulation. When countries ban crypto outright, they push users into unregulated spaces where scams and fraud thrive. When they regulate too strictly, they stifle innovation.

El Salvador’s 2021 Bitcoin law promised financial inclusion for the unbanked, but today only 12% of Salvadorans regularly use it. The government’s Chivo wallet has been plagued by security breaches, and the IMF warns that Bitcoin’s volatility threatens economic stability. Salvadorans still rely on crypto for remittances; 80% of the population receives money from abroad, and traditional remittance fees can exceed 10%.

In Nigeria, the Central Bank’s ambiguous stance has created a gray zone where legitimate businesses operate in fear of sudden crackdowns. While crypto adoption has soared, the lack of clear regulations leaves users vulnerable to scams. A report found that 35% of crypto-related fraud cases stemmed from unregulated exchanges, a direct consequence of regulatory uncertainty.

Conversely, countries like Singapore and Switzerland have struck a balance. Singapore’s Payment Services Act requires crypto exchanges to register with the Monetary Authority, ensuring consumer protection while fostering innovation. Switzerland’s “Crypto Valley” in Zug offers clear tax guidelines and business-friendly policies, attracting over 1,000 blockchain companies. These nations prove that regulation can be both rigorous and enabling.

The Path Forward: Toward Harmonized Global Standards

The path forward lies in global cooperation. The Financial Action Task Force (FATF) has issued guidelines for crypto regulation, but adoption is inconsistent. Meanwhile, the EU’s MiCA framework and the U.S.’s push for stablecoin legislation show promise. As PwC’s 2025 report notes, “countries that develop balanced regulatory frameworks will lead the next wave of financial innovation.”

Stablecoins, digital assets pegged to fiat currencies, are becoming a critical focus. The U.S., UK, and several Asian countries are developing regulatory frameworks for stablecoins, recognizing their potential to revolutionize payments while mitigating volatility risks.

The EU’s MiCA regulation has already set standards for stablecoin issuers, requiring reserves to be fully backed and audited. This could pave the way for stablecoins to become a bridge between traditional finance and crypto.

The U.S. remains a key player in this evolution. With Bitcoin ETFs approved in 2024 and growing bipartisan support for clearer regulations, Washington has finally established a coherent framework of crypto-friendly legislation. But without coordination with global partners, the U.S. risks becoming a regulatory outlier, driving innovation overseas while losing its competitive edge.

My Perspective: The Real Threat Isn’t Crypto, It’s Regulatory Chaos

Having been involved in this space for over a decade, I’ve seen crypto’s potential to empower the unbanked and disrupt monopolistic financial systems. I’ve also seen how regulatory chaos creates winners and losers. In India, a 30% tax on crypto gains has driven traders to offshore exchanges, while in Nigeria, regulatory ambiguity has left users vulnerable to scams. Meanwhile, the UAE’s clear rules have attracted global firms, creating jobs and economic growth.

The solution isn’t bans or blind enthusiasm, it’s collaboration. The global crypto market cap reached $1.2 trillion in early 2024, rebounding from the volatility of 2022. As of the time of writing, the current market cap is $4.05 trillion. This is 3 to 4 times more than the previous year. Also, bear this in mind, I think this is not the peak of this current bull run. The figures could double at their peak. In my humble opinion, this isn’t a bubble waiting to burst; it’s a foundational shift in how money works.

Consider this: 40% of the world’s population remains unbanked. For them, crypto isn’t a speculative asset; it’s a lifeline. In Venezuela, citizens use Bitcoin to buy groceries as the bolivar collapses. In Kenya, mobile crypto platforms enable microloans for small businesses. In the Philippines, remittances sent via crypto cost 80% less than traditional channels. These aren’t fringe cases, they’re the future of finance.

Of course, for every success story, there’s a cautionary tale. China’s total ban has driven mining operations underground, creating environmental and security risks. El Salvador’s Bitcoin experiment has strained public finances in 2022, with the government losing hundreds of millions on its Bitcoin holdings. These are the past, its value has rocketed. But will this happen again? These issues aren’t due to crypto itself; they’re due to poor implementation and lack of foresight.

The Choice Before Us

The crypto revolution isn’t coming, it’s here. The question isn’t whether we’ll embrace it, but how we’ll govern it. As the world watches India, Nigeria, and the UAE navigate this new landscape, one truth is clear: the countries that get regulation right will reap the rewards. The rest will be left behind.

Global adoption is growing at an unprecedented pace, but fragmented regulation is the real threat. When governments prioritize fear over innovation, they sacrifice economic opportunity for their citizens. When they embrace collaboration and balance, they unlock a future where finance is inclusive, efficient, and resilient.

“Crypto isn’t the problem. The problem is when governments don’t understand it.”

In 2025, the world has a choice: to let regulatory chaos stifle a financial revolution, or to harness its potential for the benefit of all. The time for decisive action is now.

Source: https://www.benzinga.com/markets/cryptocurrency/25/09/47787445/crypto-isnt-the-real-threat-its-regulatory-chaos

Anndy Lian

www.anndy.com

j j j

July 18th, 2025

Trump’s Fed firing threat shakes markets: A deep dive into the economic fallout

The most striking development in this saga is the report that President Trump drafted a letter to fire Federal Reserve Chair Jerome Powell and shared it with House Republicans during a private meeting.

This move, if true, signals a potential escalation in Trump’s long-standing frustration with Powell, whom he has criticised for not aligning Fed policies, particularly interest rate decisions, with his economic agenda. Sources indicate that Trump sought input from the lawmakers, many of whom reportedly supported the idea of ousting Powell.

However, Trump later walked back these reports, stating he’s “not planning on doing anything” and deeming it “highly unlikely” he would fire Powell unless there were extreme circumstances like fraud. He even denied drafting the letter, despite earlier accounts suggesting otherwise.

This episode is more than just political theatre. It raises serious questions about the independence of the Federal Reserve, a cornerstone of US economic stability. The Fed’s autonomy allows it to make monetary policy decisions based on data and long-term economic health, free from short-term political pressures.

If Trump were to follow through on such a threat, it could erode confidence in the Fed’s ability to act impartially, potentially destabilising financial markets and undermining the US dollar’s global standing.

Even the mere suggestion of such an action has already sparked volatility, as markets grapple with the uncertainty of a politically influenced central bank. Trump’s history of clashing with Powell, particularly over his desire for lower interest rates to stimulate growth, adds context to this tension; however, the draft letter, if it exists, marks a bold step toward direct intervention.

On the economic front, several key indicators provide additional layers to this story. US producer prices (PPI) in June 2025 remained flat, missing expectations of a 0.2 per cent increase after a revised 0.3 per cent rise in May. This stagnation was driven by a 0.1 per cent dip in service prices, highlighted by a sharp 4.1 per cent drop in traveler accommodation costs, offset by a 0.3 per cent rise in goods prices, the largest since February, fuelled by an 0.8 per cent jump in communication equipment.

Flat producer prices suggest that inflationary pressures may be cooling at the wholesale level, which could ease some of the Fed’s concerns about overheating. However, this comes on the heels of a hotter-than-expected consumer price index (CPI) reading earlier in the week, creating a mixed inflation picture that complicates the Fed’s next moves.

Across the Atlantic, UK inflation rose to 3.6 per cent in June 2025, the highest level since January 2024, up from 3.4 per cent in May and exceeding forecasts. This spike was primarily driven by a 1.7 per cent increase in transport costs, with motor fuel, airfares, rail fares, and vehicle maintenance all contributing. Rising UK inflation could pressure the Bank of England to tighten monetary policy, potentially strengthening the pound and influencing global capital flows.

Meanwhile, US industrial production rose 0.3 per cent in June, surpassing expectations of a 0.1 per cent gain after two flat months. Manufacturing edged up 0.1 per cent, while utilities surged 2.8 per cent, boosted by a 3.5 per cent rise in electricity generation. This resilience in industrial activity signals underlying economic strength, though trade tensions and tariffs could pose risks to sustained growth.

Equities: A relief rally in the US, struggles elsewhere

The equity markets have responded swiftly to the Trump-Powell saga. In the US, stocks closed higher on Wednesday after Trump quelled fears of removing Powell, offering a soothing balm to investors rattled by earlier reports. The S&P 500 climbed 0.3 per cent, the Dow Jones Industrial Average gained 231 points, and the Nasdaq 100 rose 0.1 per cent to a record close.

This uptick reflects a relief rally, as markets had dipped earlier on concerns that Powell’s ouster could disrupt monetary policy stability and exacerbate inflation and trade worries. The flat PPI data also helped calm nerves after Tuesday’s hotter CPI reading, suggesting that inflationary pressures might not be as intense as feared.

On the corporate side, results were mixed: Goldman Sachs rose one per cent after beating profit estimates, while Johnson & Johnson soared 6.2 per cent on strong earnings and an upgraded outlook. In contrast, Bank of America fell 0.3 per cent on weak revenue, and Morgan Stanley dropped 1.3 per cent despite solid earnings.

In Europe, however, the mood was less upbeat. Frankfurt’s DAX slipped 0.2 per cent to 24,048, marking its fifth consecutive loss amid trade uncertainty and disappointing earnings. Hopes for a softer tariff deal faded as Trump renewed threats to expand tariffs to pharmaceuticals and semiconductors by August 1 under his “reciprocal” tax plan.

The EU Trade Commissioner, Maros Sefcovic, is set to visit Washington to negotiate the US’s proposed 30 per cent tariff, underscoring the high stakes for European exporters. Automakers bore the brunt of the decline, with Volkswagen down 3.7 per cent, Porsche AG off three per cent, and Mercedes-Benz losing 1.9 per cent. Chemical distributor Brenntag also fell 2.6 per cent after a Deutsche Bank downgrade. These losses highlight how Trump’s trade policies are casting a long shadow over European markets.

In Hong Kong, the Hang Seng Index fell 0.3 per cent to 24,518, snapping a four-day winning streak after hitting a four-month high earlier in the session. Traders took profits as US futures weakened following June inflation data, which hinted that tariffs might be pushing prices higher and reducing expectations for Fed rate cuts.

Trump’s signals of potential tariffs on pharmaceuticals by the end of July, with semiconductors possibly next, added further pressure. Notable losers included Pop Mart International (-4.3 per cent), Zhejiang Leapmotor Tech (-3.0 per cent), KE Holdings (-2.7 per cent), and China Longyuan Power (-2.5 per cent). The pullback reflects broader concerns about how US trade policy could disrupt Asian markets, particularly those tied to global supply chains.

FX: Dollar volatility and global currency shifts

The foreign exchange market has been a rollercoaster amid these developments. The US dollar (USD) initially dipped on reports that Trump might fire Powell, as investors worried about the implications for Fed independence and continuity of monetary policy. The dollar index (DXY) fell below 98.40, reflecting this unease.

However, the USD rebounded after Trump denied the claims, and the soft PPI data bolstered confidence that inflation might remain in check. This recovery underscores the dollar’s sensitivity to both political headlines and economic fundamentals.

The euro (EUR) capitalised on the dollar’s early weakness, briefly rising above US$1.17, but later pared its gains as Powell-related uncertainty lingered, settling around US$1.1630. The British pound (GBP) strengthened to above 1.34, buoyed by the softer dollar and a temporary lift from UK inflation data, which hinted at potential Bank of England action.

In Japan, the yen weakened against the dollar, with USDJPY climbing to 148.20, as exports fell 0.5 per cent year-over-year in June, missing expectations of a 0.5 per cent gain. This decline was driven by an 11.4 per cent drop in exports to the US and a 4.7 per cent fall to China, though exports to the EU rose 3.6 per cent. Imports, meanwhile, rose 0.2 per cent year-over-year, defying forecasts of a 1.1 per cent drop. These trade figures highlight the challenges facing export-driven economies amid global trade tensions.

Commodities mixed, yield curve steepens

In the commodities space, gold rose, snapping a two-day slide, as investors sought safety amid the uncertainty surrounding Powell. The metal surged as much as 1.6 per cent before trimming gains after Trump’s denial, reflecting its role as a haven asset. Oil edged higher after a three-day slide, with West Texas Intermediate (WTI) near US$67 and Brent below US$69, driven by mixed US inventory data. Crude stockpiles fell, but distillate inventories rose, amid ongoing trade war concerns.

In the bond market, the spread between 5-year and 30-year US Treasury yields widened to 108 basis points, the steepest since 2021. This steepening yield curve could signal expectations of stronger growth and higher inflation ahead, though it may also reflect uncertainty about the Fed’s future path under political scrutiny.

Cryptocurrencies: Bitcoin and Ethereum in focus

Bitcoin (BTC-USD) is consolidating below US$120,000 after hitting an all-time high of US$123,091 earlier in the week, closing flat at US$118,600. A bearish engulfing candle and declining volume, from US$180 billion on July 14 to below US$100 billion by July 15, suggest market indecision. Support sits at US$117,000, with a potential drop to US$114,400-US$112,000 if breached. Despite this, spot Bitcoin ETF inflows surged to US$799 million on Wednesday, signalling robust long-term demand.

Ethereum (ETH-USD) soared 15 per cent in three days after Peter Thiel disclosed a 9.1 per cent stake in BitMine, a crypto miner holding 164,000 Ether worth US$500 million. This news has electrified the crypto space, underscoring growing institutional interest.

My take: Implications and outlook

Recent developments indicate that we are at a pivotal moment in the global economy. Trump’s suggestion of firing Powell raises concerns about the independence of the Federal Reserve, a move that could lead to long-term market instability if it were to occur.

The current mixed economic signals from flat US Producer Price Index (PPI) and rising inflation in the UK, to solid industrial production, suggest that the global economy is in a state of flux, with unpredictable trade policies adding to the uncertainty.

In the US, equities show resilience, while other markets exhibit vulnerabilities. The fluctuations in the dollar underscore its crucial role in global finance. Commodities and cryptocurrencies present both opportunities and risks, with gold and Ethereum standing out amid this uncertainty.

Looking ahead, the relationship between politics and economic policy will be vital. If Trump decides to back off, the markets may stabilise; however, any renewed pressure could lead to increased volatility.

Key economic data releases, such as US retail sales and the Eurozone Consumer Price Index (CPI), will further influence the situation. For now, the world is watching closely, and I will continue to analyse the data to provide a clear perspective on what lies ahead.

Source: https://e27.co/trumps-fed-firing-threat-shakes-markets-a-deep-dive-into-the-economic-fallout-20250718/