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China to Pay Interest on Digital Yuan Holdings in Major Overhaul Aimed at Reviving Adoption

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China’s central bank has unveiled a sweeping overhaul of its digital yuan framework, announcing that commercial banks will soon begin paying interest on digital yuan holdings — a significant policy shift designed to accelerate adoption of the country’s central bank digital currency after years of slow uptake.

In an article published on Monday by state-owned Financial News, Lu Lei, a deputy governor of the People’s Bank of China (PBOC), said the digital yuan, officially known as the e-CNY, will transition from functioning primarily as digital cash to operating as a form of “digital deposit currency.” The new framework is set to take effect on January 1, 2026.

The move marks the most substantial change yet in China’s decade-long digital currency project and signals Beijing’s recognition that the e-CNY needs stronger economic incentives to compete with dominant private payment platforms.

From digital cash to digital deposits

Under the new framework, verified digital yuan wallets will earn interest, with rates aligned to existing self-regulatory agreements governing deposit pricing in China’s banking system. In addition, digital yuan balances will be covered by China’s deposit insurance scheme, giving them the same level of protection as conventional bank deposits.

Lu said the reform follows more than ten years of experimentation and pilot programmes, noting that the e-CNY is widely viewed as one of the most advanced central bank digital currencies globally. Despite that technological lead, adoption has lagged behind expectations since the formal pilot began in 2019.

By allowing interest payments, the PBOC is effectively positioning the digital yuan closer to a bank deposit rather than a simple cash substitute — a shift analysts say could make the currency more attractive to households and businesses that currently see little reason to hold it.

The policy also gives banks greater flexibility to integrate digital yuan balances into their broader asset and liability management, potentially easing concerns that widespread e-CNY use could disrupt traditional funding structures.

For non-bank payment institutions, Lu said digital yuan reserve funds will be treated the same as existing customer reserves, with a 100% reserve requirement applied — a measure aimed at maintaining financial stability and regulatory consistency.

Scale without mass adoption

As of the end of November 2025, China had processed 3.48 billion digital yuan transactions worth a cumulative 16.7 trillion yuan ($2.38 trillion), according to PBOC data cited by Lu. While the figures highlight the scale of the pilot programme, they also mask a key challenge: the e-CNY remains marginal in daily consumer payments compared with entrenched platforms such as Alipay and WeChat Pay.

Those private platforms dominate China’s cashless economy, offering seamless ecosystems that combine payments with messaging, shopping, credit, and wealth management. By contrast, the digital yuan has largely been used for government disbursements, transport payments, pilot retail scenarios, and controlled trials.

The introduction of interest and deposit insurance appears aimed squarely at narrowing that gap and encouraging users to hold e-CNY balances rather than treating the currency as a pass-through payment tool.

Renewed push at home and abroad

The overhaul comes as Chinese authorities intensify efforts to promote the digital yuan both domestically and internationally. Last week, the PBOC said it would expand cross-border use of the e-CNY, including a planned pilot with Singapore, while deepening CBDC payment links with Thailand, Hong Kong, the United Arab Emirates, and Saudi Arabia.

In September, the central bank also launched the e-CNY International Operation Center in Shanghai, a move widely seen as part of Beijing’s broader ambition to increase the global role of the yuan and reduce reliance on dollar-based payment systems.

The international push contrasts with China’s continued hard line against decentralized cryptocurrencies. While Beijing has embraced blockchain technology and state-backed digital money, cryptocurrency trading and mining remain banned on the mainland, underscoring the government’s preference for tightly controlled digital finance.

By paying interest on digital yuan holdings, China is addressing one of the core weaknesses of its CBDC rollout: the lack of a clear financial incentive for users. The shift also blurs the line between traditional bank deposits and central bank-issued digital money, raising longer-term questions about competition for deposits and the evolving role of commercial banks.

However, the PBOC is betting that aligning the e-CNY more closely with existing banking norms, rather than positioning it as a disruptive alternative, will finally help the digital yuan move from pilot projects to everyday use. Whether that is enough to challenge China’s powerful private payment giants remains the next test.

U.S. Pledges $2bn in Humanitarian Aid After Dismantling of USAID Reshapes Foreign Assistance

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The United States will commit $2 billion in life-saving humanitarian assistance next year to tens of millions of people facing hunger, disease, and displacement across dozens of countries, the State Department said on Monday.

The move marks a significant recalibration of Washington’s aid architecture following the Trump administration’s decision to dismantle the U.S. Agency for International Development (USAID) earlier this year.

The funding will be overseen by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) and disbursed through UN agencies and international humanitarian partners, according to the statement. The move effectively shifts the management of a large portion of U.S. emergency aid away from a standalone American development agency toward multilateral coordination under the UN system.

The pledge comes against the backdrop of a major restructuring of U.S. foreign assistance. Earlier this year, the Trump administration announced the cancellation and winding down of USAID, arguing that the agency had become inefficient, overly bureaucratic, and misaligned with the administration’s “America First” foreign policy doctrine. USAID, founded in 1961, had for decades served as Washington’s primary vehicle for delivering development aid, disaster relief, and health programmes in some of the world’s poorest and most fragile countries.

Its closure marked a sharp break from past U.S. policy and sparked concern among humanitarian organizations and foreign policy experts, who warned that dismantling USAID could weaken America’s influence and slow emergency responses in crisis zones. In response, administration officials said humanitarian assistance would not disappear but would instead be restructured, with greater reliance on multilateral institutions and tighter oversight of how funds are spent.

The newly announced $2 billion package appears designed to reassure allies and aid agencies that Washington intends to remain a major humanitarian donor, even as it overhauls the way assistance is delivered. According to U.S. officials, the funding will support emergency food aid, nutrition programmes, access to clean water, basic healthcare services, and disease prevention efforts, particularly in conflict-affected and climate-vulnerable regions.

Much of the assistance is expected to be directed to sub-Saharan Africa, the Middle East, and parts of Asia, where prolonged conflicts, droughts, floods, and economic shocks have pushed millions into acute food insecurity. The United Nations estimates that more than 300 million people globally will require humanitarian assistance next year, with funding shortfalls already forcing aid agencies to scale back operations.

By placing the funds under OCHA’s coordination, Washington said it aims to improve efficiency and ensure resources are allocated based on the severity of need. OCHA plays a central role in prioritizing crises, coordinating donor responses, and managing pooled humanitarian funds that can be rapidly deployed in emergencies.

The State Department also framed the pledge as part of a broader effort to prevent humanitarian crises from escalating into security threats, mass migration, or regional instability. Officials argue that early intervention on hunger and disease is more cost-effective than responding to full-blown crises later.

Aid groups have cautiously welcomed the funding commitment but stressed that the loss of USAID leaves a gap in long-term development planning and on-the-ground expertise that humanitarian aid alone cannot fill. They have urged the administration to clarify how future development and resilience programmes will be handled alongside emergency relief.

While the State Department did not provide a detailed breakdown of country allocations, it said further details would be released as needs assessments are completed. However, the $2 billion pledge signals that even after the dismantling of USAID, the United States intends to retain a visible — if restructured — role in the global humanitarian system.

Strategy Acquires More Bitcoin For $108.8M, Draws Heavy Criticism From Analysts

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Strategy has acquired 1,229 BTC for $108.8 million at an average price of $88,568, increasing total holdings to 672,497 BTC acquired for $50.44 billion at $74,997 per coin, achieving 23.2% BTC yield year-to-date.

According to a Form 8-K filed on Monday, the coins were acquired Dec. 22-28 and funded through at-the-market stock sales. This purchase extends CEO Michael Saylor’s aggressive Bitcoin treasury strategy since August 2020, positioning the firm as the largest corporate holder and leveraging debt and equity issuances to fund acquisitions amid BTC’s 116% rise from the average cost basis.

The latest buy brings Strategy’s year-to-date BTC yield to 23.2%, a metric the company uses to measure how much its Bitcoin holdings have grown relative to shares outstanding.

As BTC dipped ~1.7% to $87,122, reactions split between supporters celebrating the milestone and critics alike questioning the timing and value extraction from existing Strategy’s reserves versus stock discounts.

While the company remains confident in Bitcoin’s long-term value, analysts such as Peter Schiff and Christopher Bloomstran are increasingly questioning the risks and balance-sheet impact of such aggressive accumulation.

Gold advocate and strong Bitcoin critic Peter Schiff critiques MicroStrategy’s Bitcoin strategy, noting a 16% unrealized gain on holdings bought at an average price of $75,000 since 2020, yielding just a 3% annualized return compared to other assets.

He wrote in a post on X,

“Strategy has been buying Bitcoin for five years. With an average cost of $75K, the company has a “paper profit” of just 16%. That’s an average annual return of just over 3%. $MSTR would have been much better off had Saylor bought just about any other asset instead of Bitcoin.”

Schiff argues that MicroStrategy would have been better off investing in almost any other asset rather than Bitcoin. He further pointed to gold and silver, both of which have recently reached record highs, suggesting that diversification into precious metals would have been a more prudent strategy. He maintains a bearish outlook on Bitcoin and has warned that a potential crash could further undermine MicroStrategy’s Bitcoin-heavy approach

Also, President and Chief Investment Officer of Semper Augustus Investments Group LLC Christopher Bloomstran, has criticized Michael Saylor’s decision to issue shares for MicroStrategy’s latest 1,229 BTC purchase, labeling it desperate and idiotic as the company’s $46 billion market cap trades at an 82% discount to its $58.5 billion Bitcoin holdings valued at $87,000 per BTC.

He wrote,

“Selling shares (to suckers) when your equity market value traded at a large premium to your Bitcoin was smart, albeit immoral. Now selling shares to buy yet more Bitcoin, but with your market cap now at 82% of the market value of your Bitcoin is just plain desperate. And idiotic.”

This contrasts with prior share sales at NAV premiums, which Bloomstran calls smart yet immoral, highlighting ongoing shareholder dilution amid a 52% stock decline since July 2025 versus Bitcoin’s 15% drop.

Amidst the criticism, MicroStrategy’s aggressive strategy has achieved 23.2% BTC yield year-to-date and outperformed traditional value funds over five years, though it amplifies volatility through $16 billion in debt and preferred stock leverage.

Outlook

Looking ahead, Strategy’s Bitcoin-centric treasury strategy is likely to remain highly polarizing. On one hand, management’s conviction is clear: the company continues to treat Bitcoin as a long-term, scarce monetary asset and a core measure of corporate performance, as reflected in its emphasis on BTC yield rather than traditional earnings metrics.

If Bitcoin resumes a strong upward cycle, Strategy could benefit disproportionately due to its scale, early accumulation, and leveraged exposure, potentially restoring equity premiums and validating Michael Saylor’s long-term thesis.

On the other hand, risks are becoming more pronounced. Continued equity issuance at or below net asset value (NAV) raises concerns around shareholder dilution, while the growing debt and preferred stock obligations amplify balance-sheet fragility during prolonged market downturns.

Are Real Human Influencers Set to Reign Supreme Over AI in 2026?

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There’s been a notable rise in AI-generated content over the last year, with the technology now capable of creating highly realistic videos. People are finding it harder than ever to tell the difference between what’s real and what’s been AI-generated, and many are not happy about this new reality.

In fact, it has led to a shift towards people consuming content that’s much simpler than ever, with many single-camera influencers finding success in 2025. This trend is likely to continue in 2026, with low-production, human-led videos outperforming glossy AI-generated content.

Consumers Looking for Alternatives to AI-Generated Content

Although AI has been hailed as the future and the next major disruptive technology, it’s clear that some fatigue is already setting in. This is especially true with AI-generated videos, which temporarily flooded the YouTube and TikTok algorithms in 2024. There was a brief trend of glossy videos with quick cuts and AI-generated voiceovers, but these faded away after YouTube implemented new policies to demonetise low-effort content with AI narrations.

The shift in 2025 was towards content that felt more grounded and human. This would often come in the form of simple video recordings of one person with a camera phone or GoPro, documenting their lives. Food vlogs and travel videos have been highly successful, as have videos of people simply giving advice on certain topics. Podcasts have continued to grow in stature, thanks to short clips of them being shared on video platforms and helping to drum up interest.

Human Connection is Still Highly Valued

A lot of futurists believe that, as AI’s influence over the online world grows, people will actively search for human connection. That means that people who create authentic content online have the chance to be successful in 2026 and beyond.

This concept of connecting people through the screen is nothing new. Live streaming blew up way before AI came along, purely because it emerged as the best way for people to interact with real-world experiences online. Online casino developers found that it was a great way to transmit table games to players, giving them the sense that they were playing in a real casino. Now, blackjack online features various live options with real-world dealers, including Lightning Blackjack and Free Bet Blackjack.

Live streaming was one of the biggest upgrades that ever happened to Facebook as well, with users of the platform able to share live videos and have people comment on them in real time. Facebook Live had more than 800 million daily users at its peak, highlighting how many people enjoyed this format.

Content creators who live stream to their audiences can encourage connection and interact with them in real time, but there are other ways to do this with short-form content as well. For example, some creators make short videos based on comments that fans have posted on their past content. This still fosters a human connection but allows people to discover the videos and the creators in their own time.

AI will still have an impact on video streaming platforms, but human content creators who have their face on camera are likely to continue capturing attention. The beauty of this content is that it’s genuine and gives people a way to connect with other humans online.

Tekedia Capital Portfolio Startup, Corgi, Rings NASDAQ Opening Bell Today

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Good People, join me in congratulating Tekedia Capital portfolio company, Corgi, one of the world’s fastest-growing startups, as it rings the opening bell at NASDAQ today.

As Corgi visits the Nasdaq MarketSite in Times Square to launch the Founder-Led ETF (Nasdaq: FDRS), an investment vehicle that offers a simple way to invest in the top 50 public companies still led by at least one of their original founders, we wish Nico Laqua, CEO of Corgi, an exceptional experience as he rings the bell.

Corgi is the world’s first AI-insurance company, operating across reinsurance, insurance, and brokerage with armies of AI agents delivering unprecedented value to clients. By every meaningful indicator, Corgi has built one of the most advanced AI infrastructures in its category. Its growth trajectory is extraordinary, coming at levels I have rarely seen in my years of investing in startups.

Today’s moment at NASDAQ is not just symbolic, it is a validation of a bold thesis and disciplined execution. Congratulations to the entire Corgi team on this remarkable milestone.

Ndubuisi Ekekwe

Chairman, Tekedia Capital