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Daily Archives: June 12, 2023

In Pictures: Food of Villa Aida in Wakayama, Japan

Innovative Italian-inspired Cuisine

No.14 of the Asia’s 50 Best Restaurants

Chart: U.S. Initial Jobless Claims Up last Week

Jumped to 261K, the highest figure since October 2021, and above market forecasts of 235K.

Source : Trading Economics

Wuhan Scientists Were ‘Creating World’s Most Deadly Coronaviruses’ Weeks Before Pandemic

Ryan Fahey wrote . . . . . . . . .

Researchers working in a Wuhan lab were trying to create a strain of the world’s most deadly coronaviruses in the weeks before the pandemic started in a bid to create bioweapons, an investigation claims.

A trove of intercepted communications, the full details of which have been kept top-secret, has revealed that scientists in China were allegedly experimenting with deadly viruses, which ended up being leaked from the Wuhan Institute of Virology, reports the Sunday Times.

US investigators say that it’s taken so long to identify the chain of events because the project itself was a covert operation and suspected of having been commissioned by the Chinese military.

They add that it was so sensitive because Beijing was trying to create bioweapons.

Now a batch of previously confidential reports in a trove of hundreds of documents, including emails, scientific papers and memos has finally been made public after a group of campaigners chased down sources for three years since the pandemic.

The Wuhan Institue of Virology is suspected of being the birthplace of the Covid-19 virus which killed seven million people worldwide, but scientists have argued for years over whether this is the case.

Those trying to find proof have struggled to gather enough information to deliver a conclusive answer because China’s ministries are notoriously secretive.

The facility’s role started far earlier than 2020 when it began searching for the virus that sparked SARS in 2003.

In the years that followed, the institute began conducting ever more dangerous experiments on coronaviruses, with many of them extracted from bats they found in southern Chinese caves.

Though it initially shared its findings with the public, claiming it was developing vaccines, a mass infection in 2016 changed its trajectory.

That year, a novel form of the coronavirus was discovered in a mineshaft in Yunnan province, on the northern border of Vietnam, Laos, and Myannmar.

A number of people died with symptoms similar to SARS, but the fatalities were never officially reported.

Later research showed that the viruses were the only of the Covid-19 family in existence before the pandemic.

It wasn’t until they were taken to the institute that the work became classified.

A US investigator explained: “The trail of papers starts to go dark”.

“That’s exactly when the classified programme kicked off,” they added.

“My view is that the reason Mojiang [the mineshaft incident] was covered up was due to military secrecy related to the pursuit to dual-use capabilities in virological biological weapons and vaccines.”

US officials say the entire programme was looking at a way of making the virus even more deadly.

It was this project that allegedly led to Covid-19, which was then leaked into Wuhan after a blunder in the laboratory.

The “trained biologists” in their “thirties and forties” involved in the shady programme started getting seriously ill, which US investigators said was unlikely with influenza.

Another investigation also found that the laboratory was much closer to the “wet market”, which is now known to be the epicentre of the outbreak, than originally thought.

There was also additional evidence suggesting that the institute had been in the process of developing a vaccine before the West even knew about the virus.

Rutgers University Professor Richard Ebright, who works in the Waksman Institute of Microbiology, said the experiments were “by far the most reckless and dangerous” undertaken in human history.


Source : Mirror

Chart: Japan Corporate Goods Price Index Down for the 5th Month in May 2023


See large image . . . . . .

Source : Twitter

The Inside Story of Russia-Iran-India Connectivity

Pepe Escobar wrote . . . . . . . . .

Make no mistake about what the G7’s Hiroshima Communique is all about.

The setting: a city in neo-colony Japan nuclear-bombed 78 years ago by the United States, for which it made no excuses.

The message: the G7, actually G9 (augmented by two unelected Eurocrats) declares war – hybrid and otherwise – against BRICS+, which has 25 nations on its waiting list and counting.

The G7’s key strategic objective is the defeat of Russia, followed by the subjugation of China. For the G7/G9, these – real – powers are the main “global threats” to “freedom and democracy.”

The corollary is that the Global South must toe the line – or else. Call it a remix of the early 2000s “you’re either with us or against us.”

Meanwhile, in the real world – that of productive economies – the dogs of war bark while the New Silk Road caravans keep marching on.

The key New Silk Roads of emerging multipolarity are China’s ambitious, multi-trillion-dollar Belt and Road Initiative (BRI) and the Russia-Iran-India International North South Transportation Corridor (INSTC). They have evolved in parallel and may sometimes overlap. What is clear is the G7/G9 will go to the ends of the earth to undermine them.

All about Chabahar

The recent $1.6 billion deal between Iran and Russia to build the 162-km long Rasht-Astara railway is an INSTC game-changer. Iran’s Minister of Roads and Urban Development Mehrdad Bazpash and Russia’s Minister of Transport Vialy Saveliev signed the deal in Tehran, in front of Iranian President Ebrahim Raisi and with Russian President Vladimir Putin attending on video conference.

Call it the marriage of Iran’s “Look East” with Russia’s “pivot to the East.” Both are now official policies.

Rasht is close to the Caspian Sea. Astara is on the border with Azerbaijan. Connecting them will be part of a Russia-Iran-Azerbaijan deal on railway and cargo transportation – solidifying the INSTC as a key connectivity corridor between South Asia and Northern Europe.

The multimodal INSTC advances via three main routes: the Western route links Russia-Azerbaijan-Iran-India; the Middle or Trans-Caspian route links Russia-Iran-India; and the Eastern one links Russia-Central Asia-Iran-India.

The Eastern route features the immensely strategic port of Chabahar in southeast Iran, in the volatile Sistan-Balochistan province. That’s the only Iranian port with direct access to the Indian Ocean.

In 2016, Iran, India, and an Afghanistan still under US occupation signed a tripartite deal in which Chabahar miraculously escaped unilateral US “maximum pressure” sanctions. That was a stepping stone configuring Chabahar as the privileged gateway for Indian products to enter Afghanistan, and then further on down the road, toward Central Asia.

Russia, Iran, and India signed a formal INSTC deal in May 2022, detailing a multimodal network – ship, rail, road – which proceeds via the previously mentioned three axes: Western, Middle or Trans-Caspian, and Eastern. The Russian port of Astrakhan, by the Caspian Sea, is crucial on all three.

The Eastern route connects eastern and central Russia, through Kazakhstan and Turkmenistan, to the southern part of Iran as well as India and the Arab lands on the southern edge of the Persian Gulf. Dozens of trains are already plying the overland route from Russia to India via Turkmenistan and Iran.

The problem is that in the past few years, New Delhi, for several complex reasons, seemed to be asleep at the wheel. And that led Tehran to become much more interested in Russian and Chinese involvement to develop two strategic ports in the Chabahar Free Trade Industrial Zone: Shahid Beheshti and Shahid Zalantari.

China makes its move

Chabahar is a tough nut to crack. Iran has invested heavily to turn it into an inescapable regional transit hub. India, in thesis, from the beginning regarded Chabahar as a key plank of its “Diamond Necklace” strategy, counterpunching the Chinese “String of Pearls,” which are ports linked by the BRI across the Indian Ocean.

Chabahar also performs the role of counterpoint to Pakistan’s Gwadar Port in the Arabian Sea, the jewel in the China-Pakistan Economic Corridor (CPEC) crown.

From Tehran’s point of view, what is needed – fast – is the completion of its eastern railway network, 628 km of tracks from Chabahar to Zahedan. In optimum terms, that might be finished by March 2024 as part of the Mashhad-Sharkhs railway axis connecting Iran’s southeast to its northeast on the border with Turkmenistan.

For the moment, INSTC cargo travels to South Asia from Iran’s Bandar Abbas Port in the Strait of Hormuz – a long 680 km away from Chabahar. So for all practical purposes, Chabahar will make transit from India to Afghanistan, Central Asia, and southern Russia shorter, cheaper, and faster.

But once again, things stalled because India did not come up with the expected financial arrangements. That ended up generating some misgivings in Tehran – especially when watching the massive Chinese investments in Gwadar.

So it’s no wonder Iran decisively moved to attract China as a major investor, which has become part of their increasingly sprawling strategic partnership. So we may end up with Chabahar also becoming part of China’s BRI, on top of its starring role in the INSTC.

Russia, for its part, is now facing the Ukraine stalemate, relentless western sanctions hysteria, and serious trade restrictions to Eastern Europe. All that while Moscow consistently expands its trade with New Delhi.

So it is no wonder Moscow is now much more attentive to the INSTC. Last December, a key deal was clinched between Russian Railways and the national companies in Kazakhstan, Turkmenistan, and Iran, and the Russians came up with a 20 percent discount for import-export containers going through the Russia-Kazakh border.

What matters most for Russia is that Chabahar operating at full speed reduces the cost of transporting goods from India by 20 percent. The Iranians fully understood the game, and started to heavily promote the Chabahar Free Trade-Industrial Zone to attract Russian investment. And that culminated in the Rasht-Astara deal.

The Zangezur spoiler

China’s BRI, for its part, plays a parallel game. Beijing is heavily investing in the East-West transit route – also known as the Middle Corridor.

This BRI corridor goes from Xinjiang to Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan, and then across the Caspian to Azerbaijan, Georgia, Turkiye, and further on to Eastern Europe – a total of 7,000 km, with a cargo journey of maximum 15 days.

BRI’s emphasis is to bet on multiple corridors East-to-West to fight possible new western-dictated disruptions of supply chains. China-Central Asia transit to Europe bypassing Russia and Iran is one of the top bets. The BRI corridor through Russia, because of NATO’s proxy war in Ukraine, is on hold for the moment. And the Chinese are testing all options to bypass the Maritime Silk Road through Malacca.

Turkiye, with the serious possibility of its longtime President Recep Tayyip being re-elected this weekend, has also made its play.

The Baku-Tblisi-Kars railway, opened in 2018, was a key plank in Ankara’s masterplan to configure itself as an inescapable hub of container freight between China and Europe.

In parallel, China invested in building a railway from Kars to Edirne on the European side of the Bosphorus while Turkiye went for a $3.8 billion upgrade of the port of Mersin and $1.2 billion for the port of Izmir. By 2034, Beijing expects this corridor to be the central plank of what it describes as the Iron Silk Road.

A certified spanner in the INSTC works is competition from the so-called Zangezur Corridor – from Azerbaijan to Turkiye via Armenia; this corridor is actually privileged by EU and British oligarchy and came to light during the 2020 armistice in Nagorno-Karabakh.

London identifies Baku as a privileged partner and is keen to dictate terms to Yerevan: accept a sort of peace treaty as soon as possible, and renounce any designs on Karabakh.

The Zangezur Corridor would be the prime geopolitical and geoeconomic Western play linking EU logistical hubs with Transcaucasia and Central Asia. What if Armenia is thrown under the bus? After all, Armenia is a member of the Russian-led Eurasia Economic Union (EAEU), which the collective West is dying to undermine.

Fasten your seat belts: a geoeconomic New Great Game centered on the INTSC is just about to start.


Source : The Cradle

Infographic: The 10 Longest Range EVs for 2023

See large image . . . . . .

Source : Visual Capitalist

Effective Strategies for Managing Anxiety

Hallie Lwvine wrote . . . . . . . . .

Norman Dill, 69, never thought he was the anxious type. But when he was diagnosed in 2019 with posterior cortical atrophy (PCA)—a neurologic condition in which the posterior cortex, the area of the brain involved with visual processing, is damaged—anxiety became part of his life. In the early stages of the disease, people may experience problems seeing and recognizing faces and objects. “I began to have trouble driving,” says Dill, who lives in Charlottesville, VA. “I’d turn into the wrong lane or hit a curb. When my grandchildren came to visit me that Thanksgiving, I realized I didn’t feel comfortable driving with them in the car.”

His anxiety only deepened over the next few years as the disease increasingly affected his life. When PCA advances, people tend to develop symptoms of dementia, such as memory loss and confusion. Dill forgot the names of his employees at the natural food store he’d owned for more than 30 years. He struggled to read the labels of the food items that he stocked on his shelves. He had stopped driving, but taking public transportation confused him. “It’s a free-floating anxiety,” says Dill. “I feel a sense of frustration that things aren’t right, and I want to get back to how things were before.”

Research suggests that about half of people with PCA or Alzheimer’s disease report symptoms of anxiety, and it’s common in many other neurologic diseases, too. But “it’s always hard to tell if the anxiety is a manifestation of the condition or if the anxiety is related to living with the disease,” says Danny Bega, MD, associate professor of neurology at Northwestern University in Chicago.

In some cases, it may be a little of both. Denise Glassner, 47, has had migraine attacks for most of her life, and by 2016 they had worsened to the point that she had to quit her job as a veterinary technician and even stop driving. “I’ve always had anxiety, but this really brought it to the next level,” says Glassner, who lives in Boca Raton, FL. “I’m often at home alone. That’s when the little demons come out. With nothing to distract me, I spend a lot of time worrying, which only makes my migraine worse.”

There’s no doubt that anxiety is on the rise in general. Global prevalence of anxiety and depression has increased by 25 percent since the start of the COVID-19 pandemic, according to research released last year by the World Health Organization. But anxiety can be particularly challenging to detect in people with neurologic disease, says Dr. Bega, since symptoms of anxiety overlap with symptoms of some neurologic conditions, such as Parkinson’s disease. In addition, patients themselves may not bring it up. “They may expect that feeling anxious is ‘normal’ for the condition and thus don’t raise their concerns with their providers,” says Zahra Goodarzi, MD, assistant professor of geriatrics at the University of Calgary.

This may start to change with recent guidelines advocating for increased screening. Last October, the U.S. Preventive Services Task Force (a panel of medical professionals that advises Congress on disease prevention) issued a draft recommendation that adults younger than age 65 be screened for anxiety by their primary care providers. While the recommendation didn’t specify screening tools, most doctors use the generalized anxiety disorder scale and the geriatric anxiety scale. Other questionnaires include the hospital anxiety and depression scale and the PHQ-4 scale, both of which measure symptoms of anxiety and depression and can be filled out in the doctor’s office. “A lot of interventions are available to treat anxiety, so it’s important that patients be evaluated and diagnosed appropriately,” says Dr. Goodarzi.

Understanding the Emotion

Anxiety—defined as a feeling of fear, dread, or uneasiness—is a normal reaction to stress. There are three types of anxiety disorders: generalized anxiety disorder (worrying excessively about health, money, work, or family), panic disorder (having panic attacks), and phobia (an intense fear of something, such as spiders or flying).

Most of the time, people with neurologic conditions experience generalized anxiety disorder, says Dr. Goodarzi. They may also develop phobias, but with good reason: “A person with Parkinson’s disease may have a very real fear of falling, which leads them to avoid activity,” she explains. “This in turn causes more muscle loss, which makes them even more likely to fall and reinforces their fear. It’s a vicious cycle.”

Isolation also can exacerbate anxiety. “Family, friends, co-workers—they all can buffer some of the impact of anxiety because you can talk to them,” says Indu Subramanian, MD, a movement disorder specialist at UCLA Health. “But if you have limited mobility and spend most of your time at home alone, it’s easy to fixate on the uncertainty of your future and feelings of lack of control.”

Some neurologic diseases can amplify these emotions. “We know with migraine, for example, certain areas of the brain are dysregulated even in the absence of an actual migraine attack,” says Katherine T. Hamilton, MD, a neurologist at MedStar Georgetown University Hospital in Washington, D.C. “We think the migraine brain in general is more hypersensitive and hyperexcitable, and this may also make people more predisposed to anxiety.”

That is how Jill Feinstein describes her experience with migraine. “It’s both physical and emotional,” says the 65-year-old, who lives in Stamford, CT. “My body is hypersensitive to touch, and I get upset easily. If someone looks at me the wrong way, I’m a mess.” Her migraine attacks have always been triggered by stress. When she was 10, she was hospitalized for two weeks with an abdominal migraine, a type of migraine that causes not just headache but intense abdominal pain, nausea, and vomiting. “I’d switched elementary schools and was stressed about being the new girl,” she says.

High levels of stress and anxiety may increase vulnerability to neurologic disease. A 2021 study published in Frontiers in Neurology found that people diagnosed with post-traumatic stress disorder were more likely to develop seizures, and a 2022 study in Neurology found that people who reported increased stress at home or at work or who had experienced recent stressful events such as a divorce had an increased risk of stroke.

Medication and Meditation

Christine Morrisey, 53, cared for her mother, Jean, who had PCA, for three years before her death in 2020. “She was always a slightly anxious person, but her condition heightened it,” recalls Morrisey, who lives in Scituate, MA. “She was seeing things that weren’t there, like people and small animals. She’d recognize my voice but not know who I was. We’d sit and watch TV together, and I’d peek over at her and see her sobbing because she didn’t understand what was happening to her.”

Toward the end of her mother’s life, Morrisey and her sisters could calm her down only with medication. “She was intensely paranoid and confused. When my siblings came to take care of her, she thought they were nurses there to steal from her,” Morrisey says. Doctors prescribed a high dose of the antidepressant escitalopram (Lexapro) and, as needed, alprazolam (Valium). “We’d give her 5 mg of alprazolam, which is a very large dose, and within 15 to 20 minutes we’d see a noticeable difference where she’d level out,” Morrisey says. “Eventually she began to request it when she’d get worked up about something, because she recognized that it helped her stop feeling so anxious.”

Some people can manage their anxiety using relaxation techniques like meditation and yoga, says Dr. Subramanian. A study published last year in JAMA Psychiatry found that for adults with anxiety disorder, eight weeks of yoga was just as effective a treatment as eight weeks on escitalopram. “In the past, doctors often considered yoga a tool to help improve motor ability among patients with neurologic diseases such as Parkinson’s, studying it to see if it helped improve balance or reduce stiffness or tremor,” says Dr. Subramanian. “But we know it can be incredibly effective in relieving anxiety as well, and, unlike medication, it doesn’t cause side effects.”

Dill says he’s turned to meditation to manage his anxiety. He also attends Buddhist retreats with his wife and does mindfulness exercises such as deep breathing every day. “It’s not a formal practice—it’s just part of my life,” he says. “I get on the bus and practice awareness, focusing on what’s going on around me—the sounds and the smells. I just try to be present and not let myself get consumed with worries.”

Therapy and Exercise

Cognitive behavioral therapy (CBT), which teaches people a variety of ways to think and behave, is used sometimes to combat anxiety. People who have specific phobias, for example, can be encouraged to confront their fears, which may help them realize that the phobias aren’t as overwhelming as they thought. CBT helped reduce anxiety among people with dementia who had mild cognitive impairment, according to a study published in Alzheimer Disease & Associated Disorders in 2021.

Exercise, including yoga, also has been found to tamp down anxiety. According to a study in the Journal of Affective Disorders in 2021, people with anxiety who exercised moderately or strenuously for 60 minutes three days a week for 12 weeks saw a significant decrease in anxiety symptoms compared with a control group. A study published in Annals of Behavioral Medicine in October 2022 looked at almost 140 people with Parkinson’s disease who were randomized to eight weeks of either yoga or stretching. Yoga not only relieved depression and anxiety but also eased some symptoms, such as trouble walking, tremors, and rigidity. “Any activity like yoga that affects the autonomic nervous system—the part of your body that regulates your heart rate, blood pressure, and breathing—will help relieve anxiety,” says Dr. Subramanian.

Identifying what can and cannot be controlled is another way to manage anxiety. This helped Maureen Foster, 72, of Lafayette, CO. She had to quit her job as a payroll clerk in 2016 because of her PCA diagnosis, and her anxiety escalated in the ensuing years as she burned through all her savings. Her feelings of dread eased after she confided in her son about her financial worries and he offered to take over her mortgage payments. She then sat down and figured out how to get around town without driving. “I walk everywhere now or take the bus,” she says. Friends pick her up several times a week to go out for coffee and provide social support. Her son comes once a week to take her to lunch and grocery shopping. “It was hard to adjust at first, but now I look on the bright side,” says Foster. “I eat lunch and dinner when I want and cook and clean when I want. I don’t have pressure to be somewhere. That helps relieve anxiety too.”

When Feinstein feels stressed and her attacks intensify, she tries to focus on what makes her feel good: her five children, her 6-month-old grandchild, and her relaxing hobbies, like watching Audrey Hepburn movies. Recently, she went on a family vacation to Anguilla and was pleasantly surprised not to experience a single headache during the weeklong trip. “Being surrounded by so much love helped alleviate my stress,” she says. Another source of support: her French bulldog. “Remy is my life,” she says. “I cook for him and design halters and collars for him. It’s good to have such a sense of purpose.”


Source: Brain&Life

A Web 3.0 World Requires New Governance Thinking

Yuxin Hou wrote . . . . . . . . .

Human society is at a pivotal moment of change. By 2025, according to predictions from nearly a decade ago, up to one-third of all human jobs will be replaced by machines. Today, robots are already cheaper than human labor in China, the rapid rise of artificial intelligence (AI) is endangering some white-collar occupations traditionally considered irreplaceable such as doctors and lawyers, and many claim that generative AI tools such as ChatGPT could soon make much knowledge work obsolete. The trend is only accelerating.

The industrial revolution empowered producer-survivors also to become consumers. The current technological revolution may take away their producer role because it is no longer needed. Under the current economic model, people trade their labor and intelligence for goods and services. In a world where machines outperform and outsmart humans, what will be our means of consumption? How will we make a living?

Web 3.0: When consuming is producing

In recent years, the digital economy has made data a more-and-more important factor of production and a key driving force for market expansion and business evaluation. Every scroll and every click tells something about the consumer and informs business decisions and, therefore, has value. The power of data has fueled the growth and success of platform giants such as Google, Apple, Facebook, Amazon, Microsoft and many others (including the big Chinese firms such as Baidu, Alibaba and Tencent). In 2021 alone, the total revenue of the five American tech firms tallied US$1.2 trillion, a staggering 25 percent jump on the year prior. This has been what is called Web 2.0, an era when user data is owned and monetized by companies.

Compared to Web 2.0, which is based on the logic of data access (companies host data and grant users access, which is limited to that platform), the Web 3.0 protocol is centered on the concept of identity – each user has a single identity which all data from different platforms are linked with, and users grant companies data access when they access services. This change gives data ownership back to the user, together with the value that goes with it. Meanwhile, distributed computing and data storage enables data to be stored on public infrastructure rather than corporate servers, removing control from companies.

This changes everything. When users own their data and are entitled to its value, every consumer behavior – information, goods or services – also creates value. In 1980, American futurist Alvin Toffler coined the word “prosumer”, which refers to an individual who both produces and consumes. Web 3.0 gives the term a new connotation – that consumption and production can become the same process. A new social class of prosumers, who make their livelihood simply by being online, is emerging.

The Web 3.0 evolution exacerbates the gap between the worlds of technology and governance. In recent years, the tech domain has been moving at an increasingly rapid pace, shifting realities in ways that people struggle to comprehend. Often problems are not realized until they are already in front of us. On the other hand, the evolvement of global governance has been slow and with little regard for emerging challenges. Furthermore, its institutions largely behave according to old geopolitical logic and lack the proper instruments to tackle effectively these new challenges. With the increasing complexity of issues, the misalignment between the tech reality and the governing framework must be addressed.

A parallel universe

Web 3.0 essentially entails a world split into a dual economy, with both segments running in parallel: the physical reality where classical economic principles still prevail, and a digital reality governed by a completely different set of logic and – not norms – but practices or ways of behavior, many of which have yet to emerge.

Traditional enterprises have diminishing marginal returns. This is an intrinsic principle regulating the expansion of a firm in the physical sphere. It is the opposite for a Web 3.0 organization. The more its stakeholders and the bigger its reach, the more valuable is the network, with little added cost. Hence, the valuation of cryptocurrencies and digital asset platforms. The decentralized power structure and the exponential growth curves combined create a space that nurtures robust tribal networks that are not bound by sovereign borders, accumulating wealth that is outside the jurisdiction of any government.

New economic structures also lead to new forms of organizations. It requires no registration, leadership or management to operate a Decentralized Autonomous Organization (DAO). Rules and needs are agreed upon via Proof-of-Stake (PoS), and any user can become a stakeholder by providing a service or purchasing stock and can partake in decision-making. DAOs are flourishing today with[AR1] neither regulation nor oversight other than themselves.

Venture DAOs, such as BitDAO and Syndicate, allow for capital pooling to “democratize” investing. Grant DAOs such as Aave Grants direct crowd-sourced funds to support individual or communal causes. Service DAOs such as MetaverseDAO gather people on a professional basis to enable collaboration and service provision. In November 2021, ConstitutionDAO pooled together US$47 million to purchase an original copy of the US Constitution. As of June 2022, BitDAO held US$1.1 billion in its coffers.

The decentralized nature of DAOs rejects the existing institutional governance framework for companies or financial entities. In most countries today, DAOs do not have proper legal status or clearly defined liabilities. They operate in a regulatory no man’s land.

The parallel existence of the physical and digital worlds creates profound complications. Many people will need to survive in the physical reality with the means generated in the digital realm. As the two worlds follow drastically different economic logics, how they can be compatible with each other and how wealth and assets be transferred between them are critical questions.

Re-leveling the geopolitical playing field

Web 3.0 also has a direct impact on the physical world. The rise of cryptocurrency is challenging the monetary sovereignty of states and has inspiring the development of central bank digital currencies (CBDCs), which will transform the global trade and settlement system. China launched a digital renminbi (e-yuan) pilot in 2020, while both the US Federal Reserve and the European Central Bank (ECB) are working on their own versions of CBDCs. Before, banks in different countries needed an intermediary to communicate and execute transactions, the most dominant being the SWIFT financial messaging system. Countries such as the US could control global trade and capital flows by managing the network. CBDCs make this mechanism obsolete. International transactions will no longer require any third party. This would mean that imposing unilateral financial and economic sanctions such as freezing assets or excluding a country from SWIFT would become ineffective.

Also entering into the picture are supranational digital currencies (SDCs). As algorithm-based cryptocurrencies may be deemed too volatile, a new digital asset class, the stablecoin, has emerged. Stablecoin are backed by assets such as fiat currencies and/or tradable commodities, providing them with more price stability compared to other crypto assets. Though today’s most prominent stablecoin such as Tether (USDT), USD Coin (USDC) and Binance USD (BUSD) are mostly pegged to the US dollar, other such tokens that are drawing attention such as Paxos Gold (PAXG) and PDX Coin are pegged to a bundle of currencies or to tangible assets such as precious metals or crude oil.

The uses of stablecoin in cross-border asset trading have multiplied in recent years, and central banks and international institutions such as the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) have taken them into consideration. The SDCs are not grounded on existing currency-issuing logic or international settlement regulations. SDCs could potentially become a common medium of trade and even part of national reserves, which would lead to a major disruption of the international trading system and the current single-currency-dominated financial order.

New governance thinking for the Web 3.0 world

Web 3.0 overturns the world order in many aspects. Not only will it alter the current global economic architecture, credit relations, and the formation of organizations, it will also change the meaning, validity and extent of sovereignty, borders, social contracts, and the roles and jurisdictions of states. It poses an unconventional set of challenges to both global and domestic governance which will have profound social, economic and geopolitical implications. Few existing mechanisms, norms, policies, institutions and governing frameworks are sufficient to address them.

What is needed is a fundamental paradigm shift in governance thinking on several levels to tackle these challenges:

First, rethink the key actors. Traditionally states are the main actors in governance issues. What each state can do, however, will be limited in a decentralized digital world that transcends national borders. Most international organizations today do not typically have jurisdiction over national issues. (The European Union is one example of a supranational entity that has legal authority in sovereign states.) In the Web 3.0 world, digital sovereignty is yet to be defined.

Second, rethink the structure. The current world order rests on the logic of a centralized power hierarchy. This will change in the new decentralized reality. The shapes and forms of processes or solutions for economic and social transactions will be very different from anything that exists today. These will inspire new ideas to tackle the existing problems in the anarchical world without global government in which we live – from climate change to poverty.

Third, rethink the mechanism. With the change in basic logic and forms of structure, so will the operating mechanism have to be recast. Much of our existing governing instruments will prove obsolete and many new ones will be required. They will have to be very different. For example, SDC payments will enable embargoed states to bypass the global interbank clearing system, making economic sanctions invalid. CBDCs and SDCs may cause countries of weak currency credibility to lose monetary sovereignty and diminish the effect of their monetary policy. The current governing institutions and regulatory framework are not compatible with such new realities. The rules must be rewritten.

Fourth, rethink the intellectual framework. Current academic structure segments and fragments the universe of knowledge, creating “experts” in specific disciplines. Already, many governance issues do not so neatly come under one area or silo. Training people to think about systems, about how all the dots connect, will require radical changes in education.

The responsibility, therefore, falls upon the next generation of global leaders and thinkers to hone the intellectual capacity to provide the new thinking and approaches needed. They must dare to be provocative, ask critical questions, not be guided by conventional wisdom, and transcend disciplinary barriers to harness the talent required to face challenges that today are unimaginable.


Source : Asia Global Online