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New York State halts construction of all new data centers

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New York became the first state to halt data center construction after Gov. Kathy Hochul signed an executive order today that temporarily bars the state from approving new permits for large projects.

Hochul’s order applies to data centers 50 megawatts or larger, potentially affecting more than a dozen projects. The state’s Department of Environmental Conservation will not issue any permits that haven’t already been completed.

While resource concerns have fueled some of the backlash, broader concern about AI has been behind much of it as well. A recent Pew Research report found that only 10% of Americans were more excited than concerned about AI use in daily life, and just 23% felt that the technology would have a positive impact on how people do their jobs. Less than a quarter of the general public feels that AI will give the economy a boost, and less than a third were confident that the government would regulate the technology responsibly.

“Progress shouldn’t arrive with a higher utility bill, deleted water supply, or noise pollution,” Hochul said at a press conference in Brooklyn. “These data centers can only be built, should only be built in places that want them. So they will never be exempt from local zoning, local approvals.”

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The moratorium will be lifted once the state finalizes an environmental review process for data centers, which Hochul expects will take about a year. Hochul’s office is also considering requiring data centers to pay into a fund that would support the state’s electrical grid, and she would like to prevent hyperscale data centers from receiving tax benefits. 

Hochul’s executive order arrives as more stringent measures are moving through New York’s legislature. Last month, the legislature advanced a bill that would pause construction of data centers larger than 20 megawatts for one year, while another still in committee would institute a three-year moratorium.

The average data center built in the last few years has been smaller than 100 megawatts, but those in development are expected to be much larger as AI drives computing demands higher. Through 2030, nearly a quarter of new data centers will exceed 500 megawatts, according to BloombergNEF, driven by increasing AI investment.

The idea of a data center moratorium has been debated at the state and federal levels, but New York is the first to put one into practice. In December, more than 230 organizations called for a nationwide pause on new data centers. Vermont Sen. Bernie Sanders has also proposed a nationwide moratorium, though it hasn’t received much traction. More recently, Maine’s legislature passed a bill that would have paused construction on new data centers until November 1, 2027, but Gov. Janet Mills vetoed it.

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Just years ago, data centers were sought after by states eager to secure new development projects, but recently, public sentiment on data centers has soured as new projects have grown in size. The scale and pace at which they’re being constructed has started to strain the electrical grid in addition to regional resources like water and farmland. Two-thirds of respondents to a recent poll said they were concerned about data centers driving up electricity prices. Another survey found that people would rather have an Amazon warehouse in their backyard than a data center.

Hochul’s order could be setting up for a clash with the Trump administration, which thus far has supported data center development. Last month, the Federal Energy Regulatory Commission, which is led by a Trump appointee, told grid operators to develop special fast lanes to speed data centers’ interconnections. 

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PlayStation FlexStrike Wireless Fight Stick Delayed Without A Firm Release Date

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Sony’s first-party fight stick was supposed to land in August.

PlayStation’s first-party FlexStrike wireless fight stick has been delayed indefinitely, though Sony is promising to share more information “soon,” according to an update on the PlayStation Blog. The FlexStrike was originally scheduled to land on August 6, 2026, alongside the release of MARVEL Tōkon: Fighting Souls, a 4v4 tag-team fighter developed by Guilty Gear and BlazBlue studio Arc System Works, and published by PlayStation.

Sony blames the change on “unexpected production delays,” and says players with pre-orders for the FlexStrike should receive updates from their respective retailers soon. Anyone who purchased directly from PlayStation should be able to check their order status on the official website. The FlexStrike costs $199.99 and comes with a sling carrying case. Pre-orders for the whole bundle went live on June 12.

“We’re working to ensure we deliver the best possible experience to our players with FlexStrike, so we’re taking extra time to put the finishing touches on the product,” Sony’s update reads. “We apologize for this delay and look forward to bringing the FlexStrike experience to the community when it launches.”

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Much like Marvel Tōkon, the FlexStrike works with PC and PS5 consoles. The fight stick was produced by PlayStation itself, built specifically for competitive players who regularly travel to tournaments or friends’ places. The action buttons are positioned on a slight incline while the stick is on a flat surface, and in true PlayStation controller fashion, there’s a touchpad just above the buttons. The stick is also customizable with swappable restrictor gates that change the shape of its impact zone. The FlexStrike communicates wirelessly via a PlayStation Link USB adapter, or with a low-latency wired USB-C connection.

Sony announced the FlexStrike, originally called Project Defiant, in June 2025, hailing it as the company’s first wireless fight stick. Almost exactly one year later, Sony revealed its release date and started accepting pre-orders. Today, it’s retracting that date and not making any firm promises.

The indefinite delay is sad news for the fighting game community and also for anyone who was looking forward to pushing those big transparent buttons purely for ASMR purposes.

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Spotify’s new conversational AI can play tracks you request and answer your music questions

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Spotify is rolling out a new AI-powered conversational feature that lets Premium users talk directly to the app about what they want to hear. Users can type or speak a request and refine the results through follow-up questions instead of manually searching for a song, podcast, or audiobook.

The feature is available from Spotify’s Home and Now Playing screens and works much like a personal audio assistant. It can choose what plays, answer questions about the current track or album, recommend something new, and look through your listening history to provide more personalized responses.

Now you can talk to Spotify:
🎧 It plays what you want
🎧 It adds what you want
🎧 It even answers what you’re curious about

What’s the first thing you’d say? pic.twitter.com/uKajUFpA1G

— Spotify (@Spotify) July 14, 2026

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What can you ask Spotify to do?

You can ask Spotify to play artists you have not heard before. Follow-up requests can add a particular artist, narrow the selection to recent releases, or make the music more upbeat. The assistant can also save a song, add it to your queue, or follow an artist. It can provide more information about whatever is currently playing. Users can ask when an album was released, what genre a song belongs to, or what inspired a particular record.

The feature also works across podcasts and audiobooks. You can ask Spotify to find more books by an author or pull up other podcast episodes featuring the same guest. It can also look back through your listening history. Spotify says you will be able to ask when you first played a particular song or which genres you have been listening to most recently.

This is not Spotify’s first AI-powered feature

Spotify has been experimenting with AI for a while now, and each feature has brought the technology into a different part of the service. AI DJ is one such feature that creates a personalized stream of music and uses an AI-generated voice to introduce songs and explain recommendations. AI Playlist lets users build playlists from written prompts based on a mood, activity, or genre.

Studio by Spotify Labs can generate personal podcasts and daily briefings shaped around a user’s listening history. Spotify has also announced a separate generative AI tool that will let Premium subscribers create licensed covers and remixes from songs by participating artists and songwriters.

The new conversational feature is now rolling out in beta to Premium users aged 18 and older in the US, Ireland, and Sweden. It is available in English through Spotify’s iOS and Android apps. Spotify says responses may not always be perfect while testing continues.

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As General Fusion makes historic Nasdaq debut, report shows global funding surged to $4.5B

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The control room for General Fusion’s Lawson Machine 26. (General Fusion Photo)

General Fusion’s stock is trading up after it became the first fusion energy company to go public on a major exchange, debuting Monday on Nasdaq.

The launch of GFUZ stock coincided with the release of the Fusion Industry Association’s annual report, which reflected that same investor enthusiasm: private funding for fusion companies totaled $4.5 billion over the past 12 months. One of the biggest rounds went to Helion Energy, a Seattle-area company that raised $465 million last month, bringing its total investment to $1.5 billion.

Soaring energy demand from AI data centers has helped drive interest in the sector as an ambitious slate of companies is building devices that create and contain plasma — a super-hot, fourth state of matter required for atom-smashing fusion to occur.

For decades, researchers have chased this clean energy source, aiming to replicate the reactions that power the sun, a churning ball of plasma. While significant progress has been made, big technical hurdles remain, and it’s uncertain when the goal will be reached.

But the promise of fusion is so enticing that the risks appear worth it for many investors.

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“A commercial fusion industry is a world-changing industry, and the returns on investment will be massive,” said Andrew Holland, CEO of the Fusion Industry Association, in the foreword to the report.

The sector has landed more than $13.3 billion from venture capitalists over the past five years, according to the annual survey. After decades of government support via national labs and R&D grants, the private sector is now picking up the majority of the tab for fusion’s progress.

One of the important milestones in the pursuit of fusion is “scientific breakeven” — the point at which the output of a fusion reaction matches the energy input to a device’s plasma, without including the rest of the system’s power needs. Scientific breakeven was first hit by Lawrence Livermore National Laboratory in 2022, but has not been reached by a private venture.

To be financially viable, the fusion companies need to go further, capturing more energy from fusion than required to operate their whole system.

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The new report includes profiles of 56 companies worldwide that are pursuing fusion, including four based in the Pacific Northwest: General Fusion, Helion, Zap Energy and Avalanche Energy, as well as Kyoto Fusioneering, which has an office in Seattle.

Here’s a closer look at the four companies based in this region:

Avalanche Energy, Seattle

  • Notable fact: Avalanche is unusual for its small-scale approach to fusion, and its plan to launch a pilot plant by 2030 is among the earlier targets in the race.
  • Year founded: 2018
  • Target uses: Electricity, space propulsion, marine propulsion, off-grid energy
  • Publicly shared total funding: $104.2 million
  • Target for scientific break even: 2029
  • Target for first pilot plant: 2030

General Fusion, Vancouver, B.C.

  • Notable fact: General Fusion has made multiple pivots in recent years in its path to commercialization and was the first to go public.
  • Year founded: 2002
  • Target uses: Electricity generation
  • Publicly shared total funding: about $500 million
  • Target for scientific break even: Not disclosed; aiming to produce fusion conditions by 2028
  • Target for first pilot plant: Approximately 2035

Helion, Everett, Wash.

  • Notable fact: Helion was the first to sign up a fusion customer when it inked a deal with Microsoft in 2023, and aims to be the first to reach commercialization.
  • Year founded: 2013
  • Target uses: Electricity generation
  • Publicly shared total funding: $1.5 billion
  • Target for scientific break even: Not disclosed
  • Target for first pilot plant: 2028

Zap Energy, Everett, Wash.

  • Notable fact: Zap recently announced it will also pursue nuclear fission energy, building small-scale reactors alongside its fusion work.
  • Year founded: 2017
  • Target uses: Electricity generation, off-grid energy, industrial heat
  • Publicly shared total funding: $338 million
  • Target for scientific break even: Not disclosed
  • Target for first pilot plant: Late 2030s

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Bridgestone Is Doing A Lot More Than Just Making Tires

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When Bridgestone was first founded in the city of Kurume, Japan, in 1931, its sole purpose was to manufacture vehicle tires. Fast forward almost a century, and most people still know Bridgestone primarily as a tire maker today. It’s one of the best-known major car tire brands on the planet, and it also produces tires for motorcycles, semi-trucks, aircraft, and even mining equipment.

What many people don’t realize is that Bridgestone isn’t just a maker of vehicle tires. Over the decades, it has launched many other ventures, some of which are more unexpected than others. Most of these ventures center around its expertise in rubber manufacturing: for example, the company’s construction solutions division manufactures seismic isolation rubbers that help protect buildings in earthquake-prone areas. They’re designed for use in high-rises, public buildings, and apartment complexes, and can help reduce the damage caused by Japan’s frequent major earthquakes.

Not everything is related to rubber, though. The same division of the company also developed the Smart Siphon drainage system, which allows water to drain through residential plumbing using horizontal pipes, rather than the sloping pipes that are needed in a conventional system.

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Agriculture is another key market for Bridgestone, and it has been ever since the company first developed rubber tracks for a rice-harvesting machine in 1968. It still makes tracks for harvesters today, as well as offering tracks for everything from asphalt pavers to excavators. The company’s range of hydraulic hoses is also used in various agricultural machines, as well as in mining and construction machines.

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Bridgestone is also a golf brand

Most of the aforementioned Bridgestone products won’t be known to anyone outside of the specific industries they’re designed for, but there are a few other things that Bridgestone makes that you might be more familiar with. One of its most notable ventures outside of tire making is its golf division, which designs and manufactures a variety of equipment and apparel for the sport.

The brand makes several distinct ranges of golf balls, with its Tour B range in particular being highly regarded among players from the amateur to elite levels. Various players on the PGA Tour use Bridgestone equipment, including none other than Tiger Woods, who has his own signature Tour B golf ball model. Bridgestone isn’t the only tire brand that makes golf balls, either. Dunlop also produces them under its Srixon and XXIO brands.

In addition to making golf balls, Bridgestone also manufactures the clubs golfers use to hit them, and a range of caps and gloves they can wear while they’re doing so. In between holes, players can also carry their clubs and balls around in one of Bridgestone’s golf bags, while sheltering from the elements under a Bridgestone umbrella.

While its golf equipment division is its best-known sports-related division to players around the world, some cycling enthusiasts might also know the brand as a maker of bicycles. It still sells a range of commuter-friendly bikes in Japan today, including an e-bike, although its range hasn’t been available in America since 1994.

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Bridgestone’s latest venture is robotics

Even though it already has a diverse array of existing side ventures outside its core tire-making business, Bridgestone continues to launch new divisions to broaden its ambitions. One of its latest ventures is into the world of robotics, with the company designing and manufacturing “softrobotics” that use its rubber manufacturing know-how to create products like artificial muscles. It’s still a new division for now, having only been formed in 2023. But, in the long run, it envisions its products being used in a variety of industries.

The development team’s artificial muscles are made from rubber tubes surrounded by high-strength fiber, and they can be grouped together to form the fingers of a flexible robot hand. They’re designed to be tough, with Bridgestone demonstrating their durability by running them over with a car. But they’re still soft enough to carefully grab fragile components in a factory. Among other things, the company says they could be used in electric vehicle manufacturing, handling breakable products in distribution centers, and assembling electrical components.

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Of course, none of these additional ventures detracts from Bridgestone’s main tire-making operation, which continues to churn out vast quantities of tires at factories around the world. Whether they’re marketed under the Bridgestone branding or under one of the multiple other brands the company owns, you’re still more likely to encounter the Bridgestone logo on the side of a car tire than anywhere else.



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California’s MyFirstEV Provides A $3,500 Instant Rebate To First-Time Buyers

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The federal government dropped the ball on the transition to electric cars when it killed the EV tax rebate last year. However, Governor Gavin Newsom has come up with an alternate solution for those in California in the form of up to $3,500 in instant rebates for first-time EV buyers.

Dubbed the MyFirstEV program, Newsom’s bill — which will go into effect sometime later this summer — is part of a larger $600 million investment by California to improve the state’s clean transportation economy. As for the rebates specifically, half of the program’s $270 million fund comes directly from California’s 2026-2027 state budget, while the other half is sourced from participating automakers.

That said, for Californians hoping to take advantage of the new incentive, there are some important restrictions. First, eligible vehicles are all zero emission, which means full battery electric cars, no hybrids. Second, in order to get the full $3,500 rebate on a new vehicle, the car’s MSRP must be under $50,000. For those planning to buy a used EV, a $1,750 rebate only applies to cars that cost less than $25,000. Finally, as the name of the program implies, the rebate is only available to first-time EV buyers.

Even with these restrictions, there’s still plenty of room in people’s budgets for a range of popular makes and models including the Nissan Leaf, Tesla Model 3 and Model Y, Hyundai Ioniq 5, Ford Mustang Mach-E and more. California-based Rivian’s latest EVs are a bit too expensive, but pricing for the R2 starts at $45,000 when the base model goes on sale sometime next year. Furthermore, the rebate is available as an instant discount through dealerships, which means you can effectively knock off up to $3,500 at the time of purchase. There’s no need to jump through additional hoops later on.

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Going forward, the rest of California’s $600 million investment into zero emission transportation includes $150 million for the state’s Community Air Protection Program, $135.5 million for the Clean Truck and Bus Voucher Incentive Project and $130 million earmarked to replace vehicles with polluting heavy-duty engines. And for those in more rural areas, the state has also pledged to install more charging stations to help make refueling EVs easier.

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Fibrous Muscles For Humanoid Robotics

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At the current rate of robotics development, you might assume that we’re close to Skynet taking over. However, while we  likely wouldn’t do well in a physical fight against a robot, we can at least keep the bragging rights of having the cooler actuators. Or at least, that was the case before a new actuator came into town — introducing “Electrofluidic Fiber Muscles”.

Traditional robotic actuators use motors of some kind with a variety of gearboxes or linkages to turn rotational movement into usable movement. This isn’t always the most effective way to run some robotics movements, especially when modeling humans. This is why many have turned to pressurized modes of actuation. Though most don’t show quite the promise of the new player.

Electrofluidic Fiber Muscles use pressure to shorten muscle strands, similar to past actuators. However, these are a tad different, taking advantage of electrofluidic pressure. A small current under high voltage is able to drive a pressure gradient in a long tube. This tube can then be connected to both an extensor and flexor portion of an actuating circuit, similar to a biological mechanical system. Better yet, this driving pressure pump can be spun around the fibers themselves, making a tight package.

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Unfortunately, it will probably be a bit till we see this inside a hobbyist robot. Until then, make sure to check out some other actuator feats!

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Satechis’s color-matched MacBook Neo accessories are just too pretty to ignore

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Satechi, which makes some fantastic charging and PC peripherals, has just launched a whole bunch of accessories targeted at the MacBook Neo. But instead of making them boring and drab, the company has actually color-matched them to the exact shade that you get on Apple’s budget-centric laptop. The offerings on the table include a multi-port adapter, a USB-C snap hub, and a wireless mouse, and all of them are now available to buy starting at $29.99 from Satechi’s website and Amazon. Color options that are up for grabs include Citrus, Blush, Indigo, and Silver

Satechi OntheGo 5-in-1 Multiport Adapter ($44.99)

The round multi-port adapter by Satechi is arguably the most eye-catching device in the lineup. It’s a puck-shaped adapter that can also attach magnetically to the lid of your MacBook Neo. The Satechi OntheGo 5-in-1 Multiport Adapter comes with a color-matched nylon braided cable and features a USB-C as well as a USB-A port, both of which allow 5 Gbps data transfer.

The USB-C port also opens the door for 60-watt pass-through charging, and there is also an HDMI port that can handle monitors at up to 4K resolution and a 60 Hz refresh rate. It also features an SD card reader, which means you can also use it as an external storage and recording device, while attached magnetically to the back of your iPhone.

Satechi USB-C Snap Hub ($44.99)

If you don’t want a device that dangles through a wire from your laptop, the Satechi USB-C Snap Hub is the ideal solution. It can link up with the USB-C ports on your MacBook Neo and sits flush with the chassis, as if it were a natural extension of the body. It just misses out on the active cooling perk that the brand is offering with its SSD enclosure.

It flaunts an anodized aluminum build that feels right at home with Apple’s laptop, and offers a decent selection of six ports. You get an HDMI port that can handle 4K 60Hz output to an external monitor, a USB-A port, a USB-C inlet, an SD card reader, as well as a micro SD card slot, and a 45-watt pass-through charging port.

And finally, we have the Satechi Slim EX Wireless Mouse, which costs $29.99 and supports wireless connectivity over Bluetooth and the 2.4 GHz link. Rocking an aluminum build, Satechi says that its latest mouse offers “quiet click switches and a precision-machined scroll wheel.” It also features a user-replaceable battery and works just fine across macOS, Windows, Android, and iPadOS platforms.

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Anthropic Introduces Claude for Teachers

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Artificial intelligence giant Anthropic today upped the ante in its quest to win the increasingly competitive market for AI in education by debuting Claude for Teachers, a free large language model designed for U.S. K-12 educators.

Claude for Teachers includes a library of teaching skills and a “direct connection to evidence-based curricula, mapped to academic standards in all 50 states,” the company said in a statement.

The move by Anthropic is the latest in a series of initiatives by tech giants including OpenAI’s ChatGPT for Teachers, Microsoft Elevate for Educators, and Google AI Educator Series to earn market share in an increasingly competitive AI and edtech space.

“We built Claude for Teachers to close the distance between what the evidence recommends and what a teacher’s week allows,” the Anthropic statement continued.

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Although some educators are skeptical of AI usage in the classroom, particularly in early childhood education, Anthropic cited Stanford research suggesting that AI tools, when designed and used correctly, can aid teachers and improve student learning.

Privacy and Security Measures

Claude for Teachers has access to academic standards in all 50 states, so it can create lessons that are “scaffolded and aligned to teaching standards.” The tool’s library of skills, co-developed with Learning Commons, was piloted with teachers in Prospect Schools in Brooklyn, New York, and other sites. Anthropic said it plans to evaluate Claude for Teachers in the Detroit Public Schools Community District, “working closely with teachers to study the impact on educator well-being and practice.”

Claude for Teachers includes Claude Code and Cowork, allowing teachers to vibe-code and use the technology to securely analyze class data. “We never train our models on your conversations. Training is off for verified teacher accounts,” Anthropic said.

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Anthropic is collaborating with the American Federation of Teachers to ensure student information is protected. “We’ve been working with Anthropic on a Gold Standard that sets out industry best practices for safety and privacy in K-12 education,” said Randi Weingarten, president of American Federation of Teachers, in the Anthropic statement.

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Revolut, SumUp and Stripe to take part in digital euro pilot

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Revolut, Stripe, UniCredit, Deutsche Bank and SumUp are just some of the companies selected for the pilot, which is set to commence in the second half of 2027.

The European Central Bank (ECB) has chosen 36 payment service providers (PSP) to participate in a 12-month digital euro pilot, according to an announcement released today (14 July).

The financial organisations, which include Revolut, UniCredit, Deutsche Bank, SumUp and Stripe Technology Europe, were selected from a pool of 50 PSP applicants, ranging from traditional banks to transaction platforms. The companies come from 16 euro member countries, including France, Germany, Italy, Ireland and Austria.

Interestingly, three of the selected companies – Deutsche, DZ Bank and BPCE – were among a group of 14 European lenders that previously voiced reservations about the digital euro, citing concerns such as cost and potentially undermining existing private-sector payments initiatives in the continent.

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The digital euro is a proposed central bank digital currency (CBDC) – basically a digital version of an official currency – that was first suggested in 2023. To date, only three countries worldwide have officially launched a CBDC: Jamaica, the Bahamas and Nigeria.

The digital euro pilot is due to commence in the second half of 2027, and will be “crucial” for testing the digital euro’s technical functionality and operational processes, as well as for refining user experience, according to the ECB.

The pilot will take place at the ECB and 19 national central banks across the euro area, specifically in Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.

The programme will use a beta version of the digital euro, which will be “functionally and technically close” to the digital euro as foreseen in the draft legislation – though it will not have legal tender status.

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The pilot will involve staff at the ECB and the participating national central banks – as well as e-commerce merchants and vendors operating on their premises, such as cafeterias and restaurants – who will be able to make beta digital euro payments from person to person (both online and offline) and from person to business.

According to the ECB, some of the 36 selected financial organisations will act as ‘distributing PSPs’, which will provide Eurosystem staff with access to beta digital euro services such as account set-up and payments, while others will act as ‘acquiring PSPs’, which will serve selected merchants and enable them to receive beta digital euro payments.

Some PSPs will have a dual role providing both distributing and acquiring services.

“The strong market interest in the pilot shows the private sector’s readiness to engage actively and quickly advance with the digital euro project to strengthen the European payments landscape,” said ECB executive board member Piero Cipollone, who chairs the Digital Euro High-Level Task Force.

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“We look forward to deeper engagement as we work with and learn alongside European payment service providers in developing a secure, efficient and inclusive digital euro.”

The digital euro pilot announcement comes after the European Parliament recently officially backed the digital euro. Meanwhile, talks began yesterday (13 July) between the European Parliament, European governments and the European Commission on establishing rules for the digital currency.

The negotiations intend to produce a final law by the end of the year, which would pave the way for formal approval of the digital euro at the start of 2027 – with an official launch intended for 2029.

One of the main arguments put forward by the ECB in support of the digital euro is its potential to reduce European reliance on non-European payment providers. The ECB has also stated that cash would not be replaced by the CBDC – a common concern associated with the project.

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Meanwhile, other common doubts about the initiative include concerns about infrastructure reliability and fears of negative impacts on traditional banks.

Last year, BearingPoint’s Martin Deere spoke to SiliconRepublic.com about how Ireland can prepare for the digital euro.

Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.

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A Dozen States Sue To Block Paramount’s Shitty, Unpopular Merger

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from the do-not-pass-go,-do-not-collect-$200 dept

A dozen states have filed an antitrust lawsuit to block Paramount/CBS’ $111 billion merger with Warner Brothers. The states argue the deal will undermine market competition, cause untold layoffs, result in higher prices and lower quality for consumers, and significantly harm a Hollywood entertainment industry that still hasn’t fully recovered from Covid, the streaming revolution, or previous shitty mergers.

The state lawsuit, led by California AG Rob Bonta and filed in the U.S. District for the Northern District of California, alleges that the merger violates Section 7 of the Clayton Act, which holds that mergers that lessen competition or endeavor to ultimately create monopoly are illegal.

Larry Ellison’s efforts to gift his nepobaby son with two Hollywood studios in a year might be fun for David and other aspiring if unqualified moguls, but it’s likely to result in more problems than ever given the deal’s significant debt load and the steady hints of incompetence among Ellisons’ chosen leadership.

From the California AG’s announcement:

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“Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences. In this country, no one is above the law. With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy.”

California’s AG notes the deal combines two of the nation’s five major film distributors, leaving four major film distributors controlling over 85 percent of all wide-release theatrical films in the United States. The deal also combines two of the five major owners of basic cable channels (three of which are technically Disney), leaving just two companies in control of 59 percent of all basic cable in the United States.

Other states that signed off on the lawsuit include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. You’ll notice a broad lack of Republican AGs, despite a lot of pretense last election season that the GOP really cared a lot about antitrust now. Apparently a top Trump donor clumsily trying to dominate American media (with Saudi, Qatari and Chinese help) doesn’t qualify.

We’ve discussed at great length how these sorts of major media deals almost uniformly result in mass layoffs and price hikes in order to pay off the massive new debt load. Every deal involving Warner Brothers in particular, which now goes back a quarter century to AOL, have always resulted in mass layoffs, higher prices, lower-quality, corner cutting, and a lot of shuttered creative projects.

Such deals generally only benefit the extraction class, who, every time they’re out of fresh ideas, look to mindless consolidation to shuffle the deck, obtain tax breaks, and nab a brief stock boost. Execs then inevitably cannibalize brand quality, cash out (see: AT&T), then float off to the next effort with “savvy dealmaker” emblazoned across their resumes, outsized executive compensation in hand.

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The state lawsuit doesn’t really touch on the foreign influence peddling concerns created by the deal’s Saudi and Chinese funding. That would normally be a job for the FCC, were we to have one that functioned in the public interest. The state also lacks any authority to challenge Larry Ellison’s efforts to dominate what’s left of U.S. corporate media, supplanting already shaky journalism with lazy right wing agitprop.

Paramount issued a statement insisting that antitrust law somehow doesn’t apply to it, while arguing any delay in the deal would harm consumers:

“The lawsuit filed by the state attorneys general, in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law. Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs.”

As hints of a looming state lawsuit loomed, Paramount executives seemed to get more and more desperate, jumping between falsely claiming opposition to the deal was “antisemitic,” to empty threats leaked to news outlets this week that the company could leave California if state regulators interfered.

A delay caused by the new state lawsuit isn’t likely to hurt consumers or workers. It is, however, potentially harmful for a very debt-heavy acquisition backed by Ellison, who is extremely over-leveraged on the AI hype bubble. Should the AI bubble pop during regulatory review, Ellison could be looking at a far less forgiving financial reality that makes his aggressive media ambitions less tenable.

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Filed Under: antitrust, competition, consolidation, consumers, larry ellison, layoffs, media, rob bonta

Companies: paramount, warner bros., warner bros. discovery

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