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The EU-27 is regarded as one of the world’s leaders in both providing and attracting investments; however, modern changes in geopolitics require a profound understanding of all the potential risks involved. Hence, the EU is assessing the region’s investment in key technology areas, such as semiconductors, AI, quantum technologies and crypto currencies in order to identify potential threats. This knowledge would allow further strengthening both the EU-wide and the member states’ economic security and guide future political-economy priorities.
Background
In June 2023, the European Commission and the High Representative published a Joint Communication on a European Economic Security Strategy; it focused on minimizing risks arising from certain economic flows in the context of increased geopolitical tensions and accelerated technological shifts, while preserving maximum levels of economic openness and dynamism. The proposed strategy sets out a common framework for achieving economic security: i.e. by promoting the EU’s economic base and competitiveness, protecting against risks, partnering with other countries to address shared concerns and interests. The fundamental principles of proportionality and precision will guide measures on economic security.
The Strategy proposes to carry out a thorough assessment of risks to economic security in four areas: – risks to the resilience of supply chains, including energy security; – risks to physical and cyber security of critical infrastructure; – risks related to technology security and technology leakage; and – risks of “weaponisation” of economic dependencies or economic coercion.
More on Strategy in: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3358
Reviewing investment’s security
The Commission has adopted recommendations calling on the EU states’ governance to review corporate and private investments within and outside the EU countries: these recommendations apply, generally, to three technology areas presenting both strategic importance for the EU and imposing the highest risk: semiconductors, artificial intelligence and quantum technologies.
The Commission calls on the member states’ governance to assess risks to economic security potentially arising from such transactions.
The present investment’s review will help to formulate a EU-wide decision on whether further action is needed – at EU and/or national levels – to address any risks identified. The Commission’s ultimate objective is to prevent EU investments from negatively impacting the regional economic security by ensuring that key technologies and know-how “do not fall into the wrong hands”.
The recommendation forms part of the EU’s Economic Security Strategy, followed by the ongoing work on foreign direct investment screening by the member states. As outlined in the EU strategy, effective EU action on economic security issues also depends on cooperation and coordination with third countries. In this context, the Commission intends further engage with allies on the subject of investment screening. The member states are asked to provide a progress report by 15 July 2025 followed by a comprehensive report on their implementation of the present recommendation (as well as on any risks identified) by 30 June 2026.
Reference and citation from: https://ec.europa.eu/commission/presscorner/detail/da/ip_25_261
More information in the Commission’s blogs: – Commission Recommendation on Outbound Investments; – Joint Communication on the European Economic Security Strategy, June 2023; – Commission Recommendation on critical technology areas, October 2023; – White Paper on Outbound Investments, January 2024; as well as – Summary of public consultation on the White Paper on Outbound Investments, July 2024.
Financial stability and cryptocurrencies
Recent announcement of a “Strategic Crypto Reserve” has sparked debate over its potential impact on financial stability, market dynamics and regulatory influence. The news has coincided with a rise in the prices of certain tokens while raising questions about possible market effects. Some argue that, unlike traditional reserves such as oil or gold, cryptocurrencies have a different risk profile and an uncertain long-term role in economic strategy. The move has also prompted broader reflection on the relationship between digital assets and established financial systems.
Source: Surowiecki J. Strategic Crypto Swindle. A bitcoin reserve would be a government-backed grift. In: https://www.theatlantic.com/ideas/archive/2025/03/strategic-cryptocurrency-reserve-swindle/681917/
For example, the US crypto reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration: as a consequence, Trump’s Executive Order on Digital Assets has directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL and ADA.
Thus, Trump says that he will “make sure that the US is the crypto capital of the World”; he also added in his post – “we are making America great again”.
Reference to: https://truthsocial.com/@realDonaldTrump/posts/114093526901586124
American initiatives
Trump’s announcement of a “Crypto Strategic Reserve” is aimed at “reassuring cryptocurrency investors amid falling prices”; initially, the promise to acquire significant amounts of crypto assets boosted values, but uncertainty around the plan led to a subsequent drop in prices.
Experts argue that creating such a reserve would transfer taxpayer’s wealth to crypto holders without providing any strategic value to the US economy. Unlike essential national “values”, like oil and other natural reserves, crypto assets lack utility for the governments, highlighting the controversial nature of the proposal as it contrasts with ongoing budget cuts in other areas.
Trump announced plans for a US Crypto Reserve via an executive order, which would include XRP, SOL, ADA, BTC and ETH platforms; the announcement temporarily boosted the prices of these cryptocurrencies by up to 65 percent…
Speculation arose around his choices, with crypto industry insiders suggesting they reflect political contributions from the businesses behind these digital tokens. Critics argue that only Bitcoin, as a decentralized asset, qualifies as a strategic reserve: i.e. the inclusion of other coins could serve to support the US crypto industry, particularly amid regulatory challenges, and may also relate to facilitating future transactions in stablecoins.
Source and reference to: https://intelligence.weforum.org/topics/6c140599564848b9b916be1e1d7f5de4/publications/3c102f425ad548409a38afc86cf04883
Cryptocurrency adoption process is rapidly increasing, driven by pricing dynamics and economic instability, particularly in countries with unbanked populations and high inflation. Some studies employ such models as, e.g. the so-called generalized linear and/or spatial autoregressive ones to analyze global adoption patterns, revealing some vital growth factors such as infrastructure availability and spatial dynamics significantly impact adoption rates. It was noted that countries with limited access to traditional financial systems experience higher cryptocurrency adoption. The World Economic Forum’s research emphasizes the evolving perception of cryptocurrencies as alternatives to conventional banking, with notable growth observed in states like El Salvador, China, Lebanon, and Nigeria.
Reference to: https://intelligence.weforum.org/topics/6c140599564848b9b916be1e1d7f5de4/publications/65adc664093343b0b402f4f1c37946a7
Digital finance: future
It is vital to understand and highlight the needs and challenges in developing a global approach to crypto-asset regulation. In doing so, it delves into the various regulatory approaches being adopted by different jurisdictions. The result of multistakeholder consultations with experts from the Digital Currency Governance Consortium, comprising experts from public authorities, regulators, policy-making bodies, industry and academia has helped to explore pathways to creating a responsible crypto-asset ecosystem globally.
Currencies often bear the face of a country’s leader; some (though quite a few) are named after a leader: no wonder that the world was curious about the fact that Trump launched the $TRUMP cryptocurrency just days before returning to presidential office…
This fact is not only indicating the value some leaders place in such digital currencies; it could also end up being looked back upon times that signaled the start of a significant turning point in the way the financial system works and is regulated. This was one suggestion among many from the discussions on the “Crypto at a Crossroad’s” session at the World Economic Forum Annual Meeting-2025 in Davos.
In the evolving crypto-asset ecosystem, coordinating regulatory frameworks across jurisdictions is a complex and formidable task. Given the unique features of the underlying technology and the limitless opportunities it presents, the need for global coordination is obvious.
Source: https://www.weforum.org/publications/pathways-to-crypto-asset-regulation-a-global-approach/
Donald Trump’s pro-crypto stance is expected to lead to new regulation in the US, which could prompt other leading economies to follow suit. However, a vital question still remains: what should this regulation look like, and can it help realize some of the potential positive sides of digital currency? Five experts discuss these issues in depth in the Crypto at a Crossroads session at the World Economic Forum Annual Meeting 2025 in Davos. The US is expected to pursue crypto regulation at pace in the coming year.
Source: https://www.weforum.org/stories/2025/01/cryptocurrency-regulations-era-experts-digital-finance/