Stablecoins Could Expand U.S. Dollar

CRYPTO
Stablecoins Could Expand U.S. Dollar

Federal Reserve Governor Christopher Waller emphasized that stablecoins could expand the reach of the U.S. dollar and called for a regulatory framework allowing both banks and non-banks to issue dollar-pegged digital currencies. Speaking at a San Francisco conference on Feb. 12, Waller described stablecoins as a key innovation in crypto, retail, and cross-border payments.

He argued that the stablecoin market has matured and would benefit from clear regulations to address risks without stifling innovation. A balanced regulatory approach, he said, should foster competition, lower costs, and enhance the payment system.

Waller highlighted stablecoins’ use in crypto trading, cross-border transactions, and financial access in high-inflation regions, but noted risks like depegging and regulatory fragmentation. He urged the private sector to continue innovating, while the public sector establishes a legal framework to enable stablecoins to scale globally. Ultimately, he believes their success will depend on consumer benefits and economic impact.

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TECH
Tesla’s $400M Government Deal Raises Questions

A potential financial conflict has emerged involving Elon Musk, the head of the Department of Government Efficiency (DOGE) and CEO of Tesla. The State Department’s procurement forecast includes a $400 million contract for armored electric vehicles—potentially Tesla’s Cybertruck—amid Musk’s federal cost-cutting efforts.

The procurement document, updated in December 2024, lists “Armored Tesla (Production Units)” for fiscal year 2025, with a five-year contract term. Though the line item was added under Biden’s administration, it was finalized after Trump’s election victory.

Musk, who also leads SpaceX, X, Neuralink, and xAI, has yet to disclose financial conflicts, claiming self-recusal if necessary. The White House defends this approach, but critics question the transparency and ethics of his dual role.

Musk’s DOGE initiative claims to have saved $37.8 billion in taxpayer funds, yet details remain unclear. Neither Tesla nor the State Department have responded to requests for comment on the procurement.

TECH
Alibaba Surges on AI Optimism

Alibaba is making a surprising comeback, fueled by China’s growing AI frenzy. The company’s Hong Kong-listed shares surged 46% since hitting a low in January 2025, adding $87 billion in market value and outperforming China’s top tech firms like Tencent, Baidu, and JD.com.

Once struggling due to Beijing’s regulatory crackdown and a post-COVID slump, Alibaba is now benefiting from AI optimism. The company’s push into artificial intelligence gained momentum after DeepSeek’s technology breakthrough rattled Wall Street, and news emerged that Apple is working with Alibaba to bring AI features to China.

Under CEO Eddie Wu and Chairman Joe Tsai, Alibaba has focused on AI investments, cloud expansion, and cost-cutting. Its Qwen 2.5 Max AI model recently outperformed Meta’s Llama and DeepSeek’s V3. However, concerns remain over AI monetization and slower cloud growth compared to U.S. tech giants. Investors now await Alibaba’s earnings report next week for further insights.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.