Here’s what happened in crypto today

Today in crypto, Coinbase has revealed that nearly 100% of its code is now written with the help of AI, the UK will defer capital gains tax on certain cryptocurrency lending and liquidity pool transactions from 2027 and the European Central Bank selected 36 payment providers to help test the digital euro ahead of its planned rollout.

Over 95% of Coinbase’s code is now written with help of AI

Artificial intelligence now helps write more than 95% of Coinbase’s code, offering new insight into the crypto exchange’s AI strategy following its decision to cut 14% of its workforce earlier this year. 

Coinbase cut 700 staff in May. In an email to employees, Coinbase CEO Brian Armstrong said AI has “dramatically” changed the pace of work and there was a need to “return to the speed and focus of our startup founding, with AI at our core.” 

Rob Witoff talks about Coinbase’s adoption of AI. Source: Cointelegraph

“Effectively, 100% of our employees are using AI on a daily basis here,” Coinbase’s head of platform, Rob Witoff, told Cointelegraph. “And close to 100% of our code, probably somewhere between 95% and 100%, is written by or with LLMs today.”

The figure is more than double Coinbase’s February estimate, when the company said 40% of its code was written with AI, reflecting the accelerating pace of AI adoption across tech and crypto companies.  

UK to defer capital gains tax on crypto lending and liquidity pools from 2027

The United Kingdom will defer capital gains tax on certain cryptocurrency lending and liquidity pool transactions from April 6, 2027, under new rules that treat qualifying disposals on a “no gain, no loss” basis until the assets are ultimately sold.

HM Revenue and Customs (HMRC) announced that qualifying crypto lending arrangements and liquidity pool transactions will no longer trigger immediate capital gains tax liabilities. Instead, gains or losses will generally be recognized only when an “economic disposal” of the digital assets occurs, aligning tax treatment with the underlying economics of these activities.

The revised framework replaces HMRC’s 2022 guidance following industry consultation and is expected to affect roughly 700,000 individuals and trustees. The tax authority said the change is intended to simplify compliance and improve fairness by deferring tax until investors realize an actual economic gain or loss.

Aave founder Stani Kulechov welcomed the move, arguing it reduces administrative burdens for taxpayers.

“This is the right direction, mainly driven by the industry feedback demonstrating that any other approach would cause significant admin burden for the tax payer,” Kulechov said in a Monday X post.

ECB picks 36 payment providers to test digital euro ahead of 2027 pilot

The European Central Bank is moving the digital euro from planning into testing, with dozens of payment companies joining the next stage of the project.

The ECB selected 36 payment service providers (PSPs) to participate in a digital euro pilot, according to an official announcement published Tuesday.

The list of selected PSPs includes fintechs Stripe and Revolut alongside traditional banks including Deutsche Bank, UniCredit and BPCE. Revolut has recently adjusted some cryptocurrency services for EU users by phasing out support for Tether USDt.

The pilot comes as governments take different approaches to digital currencies. While Europe is expanding testing of its proposed central bank digital currency (CBDC), the US has moved to block the Federal Reserve from issuing a CBDC.

Source: ECB