Business

Drake bet $1 million on Argentina to win the World Cupbut lost it all in two minutes

World-famous singer Drake bet $1 million that Argentina would win the World Cup final against France on Sunday. But despite the games final result, he still lost the cash.

While Argentina did pull through, Drakes bet was placed in the 12 market, which doesnt account for extra time.

At first it looked as though the star was in luck, and he could win $2.75 million back, as Argentina was ahead 2-0 by half time. But Drakes hopes were lost in the space of just two minutes when Frances Kylian Mbappé scored two goals, equalizing the scoreboard and turning the game around.

Both teams scored again in extra time, and Argentina finally earned their trophy in a nail-biting round of penalties.

Drake curse

Drakes daring gamble is not his first, as the musician has already bet on several sports games this year. In February, he placed $1.26 million between three wagers for the Rams to win the Super Bowl over the Cincinnati Bengals, taking home $1.4 million.

But hes also built up a reputation for siding with losing teams, leading to a widespread joke that he has a curse. Drake lost $100,000 in April when he wagered on the Duke Blue Devils winning against the North Carolina Tar Heels in the Final Four.

In October, FC Barcelona lost against Real Madrid after Drake bet in their favor; the team had even worn a kit bearing the stars OVO sound logo as part of a sponsorship by Spotify.

In November, Drake lost $1.5 million when he bet on Israel Adesanya to win against Alex Pereira in a UFC middleweight title fight.

The curse even extends beyond his major bets; after Drake took a picture with Manchester City player Sergio Aguero, the team exited the Champions League. Roma even banned their team from taking photos with the singer in 2019.

This time, however, Drakes supposed curse appears to have only affected the man himself.

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Unlike Washington, Andreessen Horowitz has a plan to push forward crypto legislation

In early November, Collin McCune joined Andreessen Horowitz Crypto as its head of government affairs, having previously served as the Republican deputy staff director for the House Financial Services Committee and ranking member Patrick McHenry (R-N.C.).

To put it lightly, he began his new role at a turbulent time. On Nov. 2, CoinDesk published the balance sheet for Alameda Research, setting into motion the collapse of not only FTX and Sam Bankman-Fried, but also years of lobbying efforts from the crypto industry.

Although a16z did not have direct exposure to FTX, the firms hasnt been immune to Crypto Winter. As Fortune detailed in a recent report, a16z in March purchased a large stake in Yuga Labs, creator of Bored Ape NFTs. Since then, the overall NFT market has cratered as much as 97%. Additionally, the Securities and Exchange Commission reportedly began an investigation into whether Yuga Labs offers unregistered securities, highlighting the regulatory uncertainty swirling around crypto.

And according to the Wall Street Journal, a16zs crypto fund has lost 40% of value in the first half of this year.

As the crypto industry finds its footing in the post-FTX world, a16z is positioning itself at the center of the conversation in Washington through hires like McCune and Brian Quintenz, a former commissioner for the Commodity Futures Trading Commission.

Fortune spoke with McCune on Friday, at the end of a chaotic week that saw Sam Bankman-Frieds arrest and congressional hearings held by both the Senate and McCunes old employer, the House Financial Services Committee, which has led bipartisan discussions on possible crypto legislation.

This interview has been edited for length and clarity.

We had two very different hearings this week in the House and the Senate. What were your takeaways?

First and foremost, the FTX situation is obviously a terrible situation. Its clear that the industry is going to have to build back some trust here. But I think its important to remember, and this is what youve really heard from both sides of the aisle and both hearings, that this isnt unique to crypto. Whats been reported on over the last month has shown that this seems to be a classic case of fraud. What you saw from the House hearing, particularly with [FTX CEO] John Ray as a witness, was much of the same.

Collectively, what I heard from Democrats and Republicans was that there is a need for clear regulation in the U.S. Thoughtful and clear regulatory guidance will protect retail investors and give a more precise direction to builders who want to follow the right path. I also think that there is obviously more work to be done on the education front.

There are some members that are pretty sure and have made up their mind on this. But also, the members that were able to sort of take the time to understand the technology and were able to speak with nuanceits really easy to take a collapse like this and to generalize and denounce, but its much more difficult to learn, understand, and speak about what is and what isnt.

This is a complicated issue. Both hearings were about figuring out what happened and ultimately about trying to protect consumers. The key piece here is what happened to the customers. What I saw was Democrats and Republicans trying to get to the bottom of how we can ensure that this protects consumers in the future.

You wrote a Twitter thread earlier this week where you said FTX was a case of fraud, not a failure of technology. But at the same time, in both hearings, there was a good deal of skepticism expressed by lawmakers. It will be hard for the crypto industry to shake that association with FTX. How can the industry convince lawmakers that its much more than Sam Bankman-Fried, who for many people was the face of crypto in Washington?

Its going to be a challenge. What crypto advocacy has looked like over the past several years has been a strong push on education. Clearly, were going to have to continue down that path. There are some lawmakers that have made up their minds. The difference here is, in the collapse of FTX, crypto has gone from being more of an elective for folks towards something that has to be addressed. Members are going to be forced towards the table on legislation. At that point, it will be up to us, and also the broader crypto advocates, to make sure that were getting the right things in front of people to make sure that they really understand the differences in technology.

I do think that it was reflected by pretty much every lawmaker that there is a need for regulation, but there is a disagreement on what it might look like. It might mean not actually passing new laws but working within existing frameworks. Then for someone like Sen. Elizabeth Warren, its a new bill that a lot of the crypto industry finds unsuitable. How do you take that broader need for regulation and narrow it down into something lawmakers can actually agree on?

First and foremost, there have been a number of quality proposals that have been put forth and that are bipartisan nature over the last two yearseverything from market structure bills to things like stablecoins. We have to continue to build on that bipartisanship. Trying to bridge that gap is obviously a very difficult thing. Legislating is hard. But when you have champions in a bipartisan way, it starts within the actual lawmaker circles versus only coming from the outside. We are an accompaniment to the way that legislation is effectuated and changed.

What many have tried to do is lead with something like stablecoinssomething that is a little bit more bipartisan. Obviously, there are snags, and the devil is in the details, but if there can be movement on something that has broad agreement that should exist, which I think there is, that can be a bellwether for the rest of crypto legislation.

When you said coming from the outside, do you mean people like you?

The broader community. Its helpful for lawmakers to hear from people who have government experience and talk the talk. But I also think its incredibly critical for people to hear from the Web3 industry, particularly if theyre in their district or in their state, and theyre creating new things. Hopefully we can be one piece of that puzzle.

How do you think the collapse of FTX has affected the appetite for legislation among lawmakers, and for what type of regulation?

Its clear that crypto legislation is now at the forefront of policymakers minds. Overall, thats a positive. But its vital that we continue to work with policymakers to ensure that policy strikes the right balance of providing protections for consumers, not stifling innovation, and obviously not stifling the future of Web3s promise.

The FTX collapse is tragic. But, ironically, its failures were not Web3 failures. They resulted from centralized structures. It strengthens the case for DeFi and Web3 more generally. This shows the importance of putting everything on chain in a transparent way without depending on one centralized actor to make the decisions.

Youre coming into this role having worked for the ranking member for House Financial Services, who will become the chair in the next congressional session. How do you think the shift in leadership is going to impact legislation?

Its always difficult to legislate in a meaningful way in a divided government. That poses its own inherent challenges. But having a champion leading one of the primary committees in the House will be a critical aspect. Theres some bipartisan consensus, particularly in the Financial Services Committee, but also plenty of other committees that will help drive the conversation.

There was a striking contrast of knowledge about crypto expressed by lawmakers. Taking on your new role at a16z, do you have a message for your portfolio companies on how they should be approaching outreach to lawmakers?

People that dont have context for D.C. are generally pretty afraid of D.C. The culture isnt always welcoming, because theyre worried theyre going to say something wrong. One of the things that I have been trying to encourage people to do is get out there and talk to your members. Explain the situation and what youre trying to build. By and large, particularly from a lawmaker perspective, theyre usually very open to hearing about cool new things that are coming and how they can improve the lives of everyday Americans.

Particularly in the tech space, when youre talking about issues that can be complex, you have to find a bridge into the knowledge gap there. Its almost like speaking two different languages. One of the ways that Ive found to be successful is talking through either gaming or NFTs. There is a pathway there by which people can understand the tangible aspects. That has been a lightbulb moment for some members.

Its clear that regulatory uncertainty around topics like securities hurts a16zs own interests. What are your priorities coming into this new role?

I came to this role because Web3 is at a critical moment. The last few months have been really tough. My main focus is highlighting the huge number of Web3-based projects that are improving the internet, and I view my role as a bridge between the Web3 community and Washington, frankly.

What does that look like practically?

I think a16z is well-regarded in the Web3 community. As they expand their reach into Washington, its helping build coalitions from the outside that can make some complex issues simple for lawmakers. The other thing is being able to effectively communicate on a regular basis with key staffers and lawmakers as well.

Theres a really strong Web3 community in Washington, D.C. We are one piece of that puzzle, and we are uniquely positioned with our broad depth of technologists to help explain what needs to be explained.

Bond King Bill Gross says the Fed has already reached optimal level of interest rates

With the U.S. inflation rate starting to trend down, the debate has inevitably shifted towards when the Federal Reserve should call it quits with interest rate hikes, and a legendary bond investor just warned the central bank is running the risk of overshooting its targets.

While U.S. inflation has shown some positive signs of normalizing recently, the Federal Reserve, architect of the six interest rate hikes this year that many have feared risk throwing the economy into a recession, appears to have no intention of stopping soon.

Critics of the Federal Reserves aggressive strategy have said the central bank risks overshooting on its interest rate goals by keeping them too high for too long. Part of that criticism lies with the speed of interest rate hikes this year, which have left little time to evaluate the effect of each hike on inflation and the state of the economy.

And one of the things the Fed may be missing is the dangerous levels of hidden leverageoff-balance and largely unregulated debtthat is circulating in the economy right now, warns Bill Gross, billionaire bonds investor and co-founder of PIMCO, one of the largest hedge funds in the world.

There is a very real risk of too much hidden leverage in todays economy, Gross wrote in an opinion article for the Financial Times Monday, and he advised the Fed to consider whether it has already reached an optimum level of interest rates.

The danger of overshooting and the need to have a forward-looking monetary policy argue strongly for this, he wrote. The Fed should now stop raising rates and wait to see if the punch bowl has been sufficiently drained.

Shadow debt

In 2002, Fortune referred to Bill Gross as the Bond King, a nickname that was also used this year in the title of a biography authored by NPRs Mary Childs. Gross retired in 2019 after a largely uneventful stint at Janus Henderson, but his revolutionary work on the bond market earned him the moniker, and at one point he controlled the largest bond fund in the world.

Gross proclivity for bondsa form of debt sold by companies or governmentsmakes him an authority when it comes to warnings about how swathes of hidden debt are rocking the economy today.

In his op-ed for the FT, Gross wrote it was important to recognize the dangerous levels of debt circulating in the economy today, citing a recent review by the Bank of International Settlements that found investors have been taking on a huge amount of off-balance sheet dollar debt that is creating big risks for the U.S. economy.

The total value of this hidden shadow bank debt is $65 trillion, Gross wrote. He advised the Fed to pay more attention to shadow banks, the network of non-bank entities including creditors and brokers that do not fall in with the traditionally regulated banking system, and sounded the alarm bells for too much hidden leverage, too much shadow debt behind closed doors.

Gross isnt the only market watcher to warn about the extreme risks of high debt in an increasingly uncertain economic environment. Nouriel Roubini, an NYU economist and chairman of economic consultancy Roubini Macro Associates, warned of a looming Great Stagflationary Debt Crisis during a November interview with Fortune, as huge mountains of public and private debt threaten to send the economy into a prolonged tailspin.

Gross wrote that the Fed should hold firm on its current level of interest rates, now sitting at a 4.25 to 4.5% range after this months latest hike, and feel out the economy before making more moves. He referred to the so-called R-star rate (also known as the real neutral rate of interest), which represents an ideal rate with an economy at full employment, and argued that both the R-star and the current federal funds rate were already at optimal levels, and increasing them further considering the hidden debt forces at play could mean more trouble ahead.

Low chance of a rate pause

Gross did add that the current rate target is only ideal if inflation appears to be approaching acceptable levels, so the bond king may be encouraged by the most recent trends.

In November, U.S. consumer prices rose by 7.1% relative to the year before, down from 7.7% in October and the fifth consecutive inflation slowdown since a June peak of 9.1%. Prices have gone down for key elements including gasoline and may have even started declining for housing, pushing some to declare the worst over.

The latest data on prices has encouraged many economists, from Nobel winner Paul Krugman to University of Michigans Justin Wolfers, to declare that inflation has already peaked and the economy is on a path towards normalization. Even former Treasury Secretary Larry Summers, who has in the past forecasted a deep recession and high unemployment due to delayed action from the Fed, recently admitted prices were declining faster than he had expected.

For now though, the economy appears stronger and inflation and inflation expectations a bit lower than I would have guessed a few months ago, Summers wrote on Twitter last week after the release of the latest CPI report.

But in spite of encouraging signs, the Fed has signaled that there is a long way to go before inflation returns to an acceptable level for the central bank.

At the central banks last meeting of 2022 earlier this month, Fed Chair Jerome Powell cautioned we still have some ways to go, and while he left the door open for smaller rate hikes next year, there is little to no chance of seeing hike pauses.

It is our judgment today that we are not at a sufficiently restrictive policy stance yet, he said. We will stay the course until the job is done.

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Why the American food sector is optimistic about 2023

In the last six months, the prospects for food, beverage, and agribusiness have started to turn around. In late 2021 and early 2022, post-pandemic inflation, compounded by supply chain disruptions, drove the cost of commodities to levels not seen in a decade. Suddenly, $8/bushel corn, $18/bushel soybeans, and $120/barrel oil were seemingly the new normal.

However, because food inflation was both sharp and sustained, these businesses found their customers willing to accept price increasesand, because inflation was widespread across the industry, those who acted swiftly experienced better performance. In fact, businesses that raised prices sooner rather than later found themselves in a more advantageous position than those who held back.

Now that commodity prices have fallen and runaway inflation has started to subside, food, beverage, and agribusiness companieseven those that didnt raise pricesmay have some breathing room on the horizon. The food industry is starting to see light at the end of the tunnel despite continued high labor costs and lingering pandemic-related operational disruptions.

Removing costs from the equation

Food industry margins have been reinforced by a number of post-pandemic shifts that are adding flexibility to the value chain. Among the most striking has been the dramatic growth of the contract manufacturing market.

Contract manufacturing, also called co-manufacturing, typically refers to the production of food and beverage items for brands and retailers. However, many of these specialty manufacturers are expanding their offerings to include packaging, custom formulation, and research and development services. Brands and retailers are taking advantage of these offerings because it enables them to transform into more focused, streamlined, and resilient companies with more targeted asset footprints.

Co-manufacturing served as a lifeline during the pandemic as consumers stayed and worked from home and retailers and brands experienced a sharply rising demand for groceries. It enabled retailers to scale up rapidly while allowing co-manufacturers to focus on what they do bestdevoting themselves to specialization without the distraction of marketing and branding.

In the face of rising labor costs and labor shortages, restaurants have, too, adopted innovative ways to alleviate tight margins with automation. One obvious example is the self-order kiosks and tablets that simultaneously fulfill a critical function and relieve waiters and cashiers from excess demand.

Automation has also found a home in the kitchen. Some restaurants are purchasing menu items that have been partially prepared, enabling them to alleviate certain tasks for chefs and line cooks. A number of chains are installing robots to take on straightforward, repetitive tasks such as making pizzas or cooking fries and tortilla chips. These examples just scratch the surface of innovation in this space.

Broadly speaking, the adoption of technologyartificial intelligence, machine learning, predictive analytics, and computer visionhas the potential to revolutionize every sector of the food, beverage, and agribusiness industry.

Becoming more resilient

Smart pricing, specialization, and technological innovation have all contributed to tailwinds in the industry, but if the last few years have taught us anything, it is to expect the unexpected. The pandemic and the conflict in Ukraine highlighted the complex interdependencies that are inherent to our globalized economyand the ease with which these links can be broken but also mitigated.

The U.S. is in the fortunate position of being both food and energy independent. Domestically, were a huge producer of commodities of all typesand if we are decoupled from the global food system, we have the capacity in many areas to make up any deficits.

At the same time, the U.S. is not immune from the impacts of changing weather patterns that have brought floods as well as water shortages to the rest of the world. For instance, this year, Spain, one of the worlds largest olive oil-producing countries, was devastated by extreme heat and drought. To ensure that tailwinds survive the impact of volatile weather, food, beverage, and agribusiness are making a concerted effort to cultivate multiple suppliers for the inputs they depend on.

As a result, the domestic outlook for food, beverage, and agribusiness remains positive. Margins are beginning to improve. The most stressful time for the food industry isas we have seenwhen inflation is on the rise. During recessionary environments, the food industry has historically proven to be a reliably strong performer, benefitting from falling labor and commodity prices. And certainly, lessons learned in the past two years will only bolster that resilience.

Colin Guheen is the managing director of food, beverage, and agribusiness investments at Capital One.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

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China COVID surge drags down 'Avatar: The Way of Water' opening weekend

Avatar: The Way of Water slightly underperformed expectations in its opening weekend, and Chinas massive surge in cases may be partly to blame.

The Avatar sequel, directed by James Cameron, took in $57 million in the Chinese box office over its opening weekend, according to Bloomberg. The Walt Disney Company, which released the film, earlier said it expected China sales to fall between $50 million and $100 million.

Globally, the film opened with $134 million from U.S. and Canadian cinemas, and $301 million globally (including sales in China). Avatar: The Way of Waters North American haul came in slightly below Disneys expectations of $135 million to $150 million, and below analyst predictions of $175 million, according to CNBC.

Still, the combined total of $435 million is enough to give Avatar: The Way of Water the second-biggest global opening weekend of the year, behind fellow Disney film Dr. Strange and the Multiverse of Madness, which earned a total of $450 million in its opening weekend.

The Avatar sequel needs to rake in a huge box office haul to recoup its development costs, with a reported production cost of $350 milliona figure that does not include the money spent on marketing. James Cameron, the films director, himself suggested that Avatar: The Way of Water would need to be the third or fourth highest-grossing film in history to break even.

The science-fiction film is the first Western blockbuster to be released in China since Augusts Minions: The Rise of Gru. Beijing has blocked the release of other films from Disney, including recent Marvel movies like Dr. Strange and Spider-Man: No Way Home (which holds the record of biggest global opening weekend during the pandemic).

Analysts said that a China release was necessary for the film to hit its target. If Avatar: The Way of Water had not gotten a release in China, that would really not be a good thing for the movie, Paul Dergarabedian, senior media analyst at Comscore, previously told Fortune.

The Walt Disney Company did not immediately respond to a request for comment.

Chinas COVID surge

China is grappling with a surge in cases as the country pivots away from its COVID-zero policy. Beijing had used lockdowns and mass testing to suppress COVID outbreaks, but economic damage and growing public dissatisfaction encouraged Beijing to ease several regulations earlier this month.

Beijing announced earlier this month that it would roll back several of its pandemic control measures, including limiting lockdowns to individual floors and apartment buildings, removing testing requirements for public venues and travel, and allowing mild and asymptomatic COVID cases to recover at home rather than in centralized isolation camps.

Yet health officials warn that China could see several waves of COVID as the country lifts more containment measures. A surge could drag down the economy as people stay home, either because theyve fallen ill or are worried about catching COVID. Chinas business confidence is now at its lowest point since January 2013, according to a survey from World Economics.

Official Chinese data suggest that COVID cases are falling from their peak earlier this month, but observers note the official count could be less reliable after Beijing repealed many of the countrys testing requirements and stopped including asymptomatic cases in its data. Chinese shoppers are flocking to drugstores to buy cold and flu medication, and funeral homes in Beijing are reporting an increase in deaths from COVID-positive individuals.

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The evolution of crypto and Web3 in the Arab world

The current FTX crisis notwithstanding, digital asset markets, crypto, Web3, DeFi, central bank digital currencies (CBDCs), and stablecoins are shaking up decades-old financial protocols. Unlike most of the other parts of the world, in the Middle East and Northern African (MENA) region central banks are driving the evolution of these technologies. Here they lead, regulate, and exert inordinate power in setting government policies. Central bankers typically have long terms in office, and nothing happens unless they approve it.

Central banks also serve as the operational arms of government financial policy. They take the lead in accelerating, regulating, curtailing, or otherwise shaping any kind of technological change that could affect the regions economy.

There is another twist. Because these regions are primarily Muslim, Islamic finance guides these organizations. The MENA region consists of 28 countries with an estimated population of more than 357 million. The region is rapidly developing. As one of the worlds resource-rich regions, it is home to the worlds largest Islamic banks, serving Muslim as well as other communities around the world and basing their decisions on Islamic finance beliefs.

Islamic finance is the only example of a financial system directly based on the ethical precepts of a major religion, providing not only investment guidelines but also a set of unique investment and financing products. Islamic finance is based on Shariah, which provides guidelines for multiple aspects of Muslim life. (Shariah is an Arabic term thats often translated into Islamic law.)

Shariah-compliant financing includes a set of practices accompanying a legal guideline that abides by Islamic laws and beliefs, such as banning interest and promoting ethical investments that follow the Quran. Shariah-compliant finance has become an accepted and vibrant element in international transactions.

In effect, Islamic finance calls for the adoption of impact-oriented economic activities and resource allocation to satisfy the material and social needs of all members of a community. Under Islamic law, money is measuring tool for value and not an asset in itself. No one should be able to receive income from money alone, so earnings from interest or speculation are considered usurious and exploitative, and therefore are prohibited, or haram.

For this reason, some central banks and government leaders initially viewed crypto skeptically, and even today in the region there is an uneven approach to these new technologies.

However, leaders across the region have acknowledged Web3/blockchain applications to be a vital alternative financing method, directing funds to impact-oriented social and economic activities that satisfy the main foundations of Islamic finance.

Bucking the global crypto bear market, from July 2021 to July 2022, the Middle East was the fastest-growing crypto market, indicating that individuals and organizations alike are embracing the technological capabilities of blockchain and the incentives it supports. While crypto transactions increased by more than 20% around the world, MENA saw a gain of more than 45%, led by Turkey.

Fueling this interest and adoption are quality Web3 research and educational resources, conferences, and media attention. Central banks feel pressure to develop coherent policies that embrace innovation. Ultimately, unlike in some other nations, banning crypto is not feasible. If all assets are becoming digital, then such steps could prohibit all digital assets and, consequently, the next stage in the evolution of the digital economy.

Progress in individual countries has been uneven, but largely there has been progress. Heres a closer look at a few key nations:

United Arab Emirates

The United Arab Emirates (UAE) leads the region, and Dubai leads in its own right with about one-third of all government applications running on blockchain. It has also supported interesting policy innovations such as the creation of metaverse police to monitor illegal behavior in the virtual worlds increasingly built on Web3.

The Central Bank of the UAE finished a CBDC pilot for multi-currency cross-border payments with the Hong Kong Monetary Authority, the Bank of Thailand, and the Digital Currency Institute of the Peoples Bank of China.

The Dubai Financial Services Authority has also issued regulations on crypto tokens for clients wishing to use this new asset class. The announcement was made to broaden the range of virtual asset regimes available, building on the investment token regulations announced in October 2021.

The UAE central bank also announced the completion of the first CBDC pilot in September. Today it is working on an e-KYC, an innovation hub, and wholesale and retail CBDCs to remain at the forefront of blockchain adoption.

Saudi Arabia

The kingdom is adopting Web3 in many forms. For example, Saudi Arabia just celebrated its National Day in the metaverse for the first time. The Saudi Central Bank (SAMA) and the Central Bank of the United Arab Emirates collaborated on a pilot CBDC. In September, SAMA hired a new crypto chief to lead its virtual assets and CBDC program.

The Saudis also have been working on tokenizing real estate as well as implementing blockchain in the health care sector and supply chain. Most recently, the Saudi British Bank (SABB) utilized blockchain to enhance digitization of letters of credit.

Bahrain

The Central Bank of Bahrain (CBB) issued final regulations in February in response to the growing demand for crypto assets, which included licensing a blockchain-based crypto exchange called Rain that allows users to buy, sell, and store cryptocurrencies. It has more than 180,000 users and theres been over $1.9 billion in transactions.

Binance and CoinMENA have also received crypto asset service provider licenses. Bahrain has even created the regions first onshore regulatory sandbox and is focusing on blockchain applications that strengthen its supply chains.

Oman

Oman has been among MENAs blockchain leaders. A few years back, the government worked on a massive upskilling project by scheduling courses and seminars to raise awareness of the technologys importance. The Central Bank of Oman has engaged experts to study the advantages and disadvantages of authorizing the use of cryptocurrencies in its economy.

Most recently, a prominent energy company, Al Shawamikh Oil Services, has partnered with Frontech to develop a sustainable energy-management system built on blockchain technology. It will track and manage the sustainable energy production units on the blockchain.

Qatar

For years, the Qatar Central Bank (QBC) had banned the mining and investment of Bitcoin and other cryptocurrencies. Recently, interest in blockchain technology has surged in the country, and so the QBC is changing its approach. It has shown strong interest in setting up a legal framework for the use of digital assets and blockchain applications and is exploring tokenized solutions for real estate. Under the auspices of the Qatar Financial Center, the country is establishing a board of experts to be introduced next year.

Blockchain adoption is nascent in Qatar, leaving software development companies with room for innovation. The Qatar University spinoff Genesis Technologies has formed a local blockchain development team to start evaluating relevant use cases. Equally exciting, FIFA World Cup organizers selected blockchain startupsAlgorand for its green credentials and Crypto.com for its easy-to-use systemsas sponsors of the tournament that just concluded on Sunday.

Aline Daoud is a civil engineer and managing partner at the Blockchain Research Institute Middle East. The BRI, headquartered in Toronto, has conducted 150 projects on Web3 use cases, opportunities, and challenges. The BRI Middle East conducts educational and pilot programs in the United Arab Emirates, Saudi Arabia, Qatar, Turkey, and Egypt. The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not reflect the opinions or beliefs of Fortune.

China says 2 have died since change in COVID rules. Experts say the numbers dont add up

More than a month after China started seeing an exponential surge in Covid cases, the country has only reported two virus deaths, defying the experience of other, more vaccinated and better resourced places as they reopened and fueling suspicion the true scale of fatalities is being hidden.

The swift abandonment of Covid Zero has seen infections explode, especially in Beijing, which has seen shortages of medicine, overwhelmed hospital staff and deserted streets as residents stay home sick or to avoid the virus. That aligns with what other places experienced as they shifted from eliminating Covid to living with it except for the lack of officially reported deaths.

Over the weekend, China reported its first fatalities since Covid Zero was dismantled earlier this month. In total, the country has declared just 11 Covid deaths among its 1.4 billion people since Nov. 19, which was more than a week after the governments first tentative steps toward loosening virus policy.

The very few Covid deaths reported so far are suspiciously low, said William Schaffner, an infectious disease expert at Vanderbilt Universitys medical school in Tennessee. He said a rapid increase in infections is typically followed by a rise in Covid-related deaths a week or two later.

China has under-vaccinated its population, particularly older persons, Schaffner said. Thus, we continue to interpret data on Covid from China with a grain of salt.

Reports on the ground suggest Beijing is seeing a wave of fatalities, with crematorium workers and relatives suggesting at least tens of people have died infected with Covid.

Thats stoked speculation officials and hospitals may be attributing deaths from the virus to other ailments as outbreaks mushroom, even though the National Health Commission which collates Chinas virus data told Bloomberg News last week that everyone who tests Covid positive at their death is classed as a virus fatality.

Chinas Covid death toll is far lower than more vaccinated countries that went through reopening waves.

When omicron hit South Korea earlier this year, daily deaths climbed to more than six per 1 million people. Meanwhile, Australia and New Zealand saw deaths pass three per-million a day at the peak of outbreaks after they left elimination behind. Even Singapore, which had a well-planned and gradual shift away from quashing all cases, experienced an increase in deaths to about two per-million daily.

Hong Kong where omicron rampaged though the citys under-vaccinated elderly, recording the deadliest outbreak in the world at one point reported its first fatalities in early February. That was about three weeks from when the city said the virus was spreading locally. More than 10,800 people in the financial hub have died of Covid this year, versus Chinas official death tally for the whole pandemic of a little over 5,000.

The low fatality rate so far also flies in the face of Chinas own experience. Shanghai reported its first Covid deaths in mid-April, less than three weeks into a brutal two-month citywide lockdown and with fewer than 30,000 cases a day. By late-May, when the outbreak had largely abated, more than 580 people had died.

Its in Chinas interests to obscure or downplay the death toll, given the way its approached Covid from the time it emerged.

The government has spent most of the past three years casting Chinas containment of Covid and low death toll as proof of the superiority of the Communist system. Now, amid the whipsaw pivot, officials are playing down the virus, with one top health adviser saying it could even just be called a cold. Covid policy is inextricably tied to President Xi Jinping, who is looking to cement his power after securing a third term in October and installing a cabal of new leaders.

All the evidence suggests China is headed for a more severe pandemic exit than other ex-Covid Zero countries.

The elderly are a particular concern. Unlike other countries that prioritized vaccinating residents of aged-care facilities, Chinas elderly have proved difficult to persuade and the group remains extremely under-vaccinated. Just 40% of people older than 80 had received a booster by late-November and while theres been a recent push to inoculate older people the figure likely remains low given the lack of mandates, as other countries deployed.

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