Welcome to another insightful edition of The Daily from The Block! It’s Friday, and today’s newsletter is packed with significant updates from the world of cryptocurrency and blockchain technology. Let’s dive in.

### Ethereum Foundation to Release Financial Report Amid Community Criticism

In response to growing community concerns about its expenditure, the Ethereum Foundation is preparing to release a comprehensive financial report “relatively soon.” Researcher Justin Drake has indicated that this report aims to provide transparency and address the criticisms head-on. This move is seen as a crucial step towards maintaining trust within the Ethereum community and ensuring that funds are being utilized effectively for the network’s growth and development.

### Japan’s Megabanks Plan Stablecoin Trial

In an ambitious project, Japan’s three largest banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Financial Group—are gearing up to test a cross-border stablecoin transfer platform known as “Project Pax.” This initiative not only involves these domestic giants but also anticipates participation from several global banking institutions. The trial aims to explore the potential of stablecoins in facilitating more efficient and secure international transactions, which could revolutionize the global financial landscape.

### U.S. Spot Bitcoin ETFs Continue to Bleed

The situation for U.S. spot Bitcoin Exchange-Traded Funds (ETFs) remains bleak, with net outflows reaching $211.1 million on Thursday. This marks the seventh consecutive day of negative flows, amounting to over $1 billion in total. Investors’ waning confidence in these financial instruments raises questions about the future viability of spot Bitcoin ETFs in the U.S. market and reflects broader sentiment towards cryptocurrency investments during volatile periods.

### Crypto Micropayments Crucial for AI Economy

As the artificial intelligence (AI) economy continues to evolve, Bernstein analyst Gautam Chhugani highlights the importance of crypto micropayments in preventing financial bottlenecks. According to Chhugani, the integration of cryptocurrency-based micropayments is essential for creating a seamless financial infrastructure capable of supporting the burgeoning AI-driven economic activities. This approach could facilitate more efficient transactions and democratize access to AI technologies.

### Telegram CEO Pavel Durov’s Stance on Market Compatibility

In a bold statement, Telegram CEO Pavel Durov expressed the company’s readiness to withdraw from markets that do not align with its principles. Following recent events in France, where Telegram was scrutinized, Durov emphasized the platform’s unwavering commitment to user privacy over profitability. This stance reinforces Telegram’s dedication to maintaining its core values even at the cost of exiting certain markets.

### Looking Ahead

As we look forward to next week, stay tuned for more updates and in-depth analysis on these unfolding stories. The dynamic world of crypto and blockchain continues to present new challenges and opportunities, and we are here to keep you informed every step of the way.

Thank you for joining us in today’s edition of The Daily from The Block. Have a great weekend!