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Home | Newsletters & Shorts | DW Weekly #217 – Reassessment of digital sovereignty strategies, data governance and exposure, and global crypto adoption

DW Weekly #217 – Reassessment of digital sovereignty strategies, data governance and exposure, and global crypto adoption

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13 – 20 June 2025


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Dear readers,

This week, concerns over digital sovereignty, data governance, and reliance on foreign cloud providers have led some EU states and other entities to question Microsoft’s reliability and review their digital sovereignty strategies.

Notably, Microsoft is under reassessment in Germany and Denmark, as the German state of Schleswig-Holstein is uninstalling the tech giant’s ubiquitous software across its entire administration, sparking concerns about digital sovereignty and the risks of foreign cloud dependency. The German case follows the Danish one, as the cities of Copenhagen and Aarhus have announced plans to reduce reliance on Microsoft software and cloud services, moving to systems such as Linux and LibreOffice. The two cases come after Microsoft previously came under scrutiny for blocking the email account of Karim Khan, the Chief Prosecutor of the International Criminal Court (ICC), in compliance with US sanctions imposed by the Trump administration.

Microsoft is also facing growing tensions with OpenAI, as the company reportedly seeks to revise its partnership by reducing Azure’s exclusive hosting rights, excluding a planned $3 billion Windsurf acquisition from the agreement, and renegotiating profit-sharing terms, all while OpenAI considers filing an antitrust complaint over alleged anti-competitive behaviour. On the other hand, the US Department of Defence has awarded OpenAI a $200 million contract to develop prototype generative AI tools for military use, opening alternative funding channels.

Concerns about data abuse have led a federal judge in New York to order the US Office of Personnel Management (OPM) to stop sharing sensitive personal data with the Department of Government Efficiency (DOGE) agents.

Additionally, regarding data governance, the European Council and the European Parliament have reached a political agreement to strengthen cross-border enforcement of the General Data Protection Regulation (GDPR).

One of the largest-ever leaks of stolen login data has come to light, exposing more than 16 billion records across widely used services, including Facebook, Google, Telegram, and GitHub.

Let’s move to the Middle East, where Iran’s Bank Sepah was reportedly hit by the hacktivist group Predatory Sparrow in a cyberattack. The group announced on Tuesday that it had ‘destroyed all data’ at the bank, which is closely linked to the Islamic Revolutionary Guard Corps (IRGC) and Iran’s military.

As geopolitical tensions in the Middle East worsened, Bitcoin prices slumped Monday evening. The drop followed Trump’s early G7 exit, his reported return to Washington for an emergency White House meeting and his Tehran evacuation warning. OKX, instead, has expanded into the EU by launching fully compliant centralised exchanges in Germany and Poland, offering access to over 270 cryptocurrencies and 60+ crypto-to-euro trading pairs. Concerning cryptocurrency adoption, the US Senate has passed the GENIUS Act, the first bill to establish a federal framework for regulating dollar-backed stablecoins. Vietnam has also officially legalised crypto assets as part of a landmark digital technology law passed by the National Assembly on 14 June.

The semiconductor export landscape is shifting as Taiwan has officially banned the export of chips and chiplets to China’s Huawei and SMIC, joining the USA in tightening restrictions on advanced semiconductor transfers.

Recent breakthroughs in quantum computing have revived fears about the long-term security of Bitcoin. With IBM aiming to release the first fault-tolerant quantum computer, the IBM Quantum Starling, by 2029, experts are increasingly concerned that such advancements could undermine Bitcoin’s cryptographic backbone.

In terms of infrastructure, Amazon will invest AU$ 20 billion to expand its data centre infrastructure in Australia, using solar and wind power instead of traditional energy sources.

Diplo in Armenia

Diplo has launched a new round of training sessions in Armenia to strengthen civil society’s understanding of digital governance. The initiative, which began on 12 June, brings together NGO representatives from both the region and the capital to deepen their knowledge of crucial digital topics, including internet governance, AI, and digital rights.

Coming up: IGF 2025 in Norway on 23–27 June

Mark your calendars for one of the main events in digital governance! The 20th annual Internet Governance Forum (IGF) kicks off on 23 June 2025 in Lillestrøm, Norway, at Nova Spektrum, and will run through 27 June under the theme ‘Building Digital Governance Together’. The event will welcome over 4,000 in-person participants, with an equal number joining online, uniting governments, private sector leaders, civil society, academia, and technical experts to shape the future of the internet. Excitingly, Diplo and the Geneva Internet Platform (GIP) will serve as official reporting partners, delivering just-in-time daily updates and a comprehensive summary via the Digital Watch Observatory

What is the OEWG on cybersecurity?

The UN’s Open-Ended Working Group (OEWG) on cybersecurity has brought all states to the table to shape responsible behaviour in cyberspace. As it wraps up its 5-year mandate in July 2025, experts reflect on its biggest gains, such as trust-building and the Points of Contact Directory, and its challenges, from geopolitical tensions to unresolved cyber threats. The next chapter? Read the full article

Diplo Blog – Advancing Swiss AI Trinity: Zurich’s entrepreneurship, Geneva’s governance, and communal subsidiarity
In his recent blog post ‘Advancing Swiss AI Trinity: Zurich’s entrepreneurship, Geneva’s governance, and communal subsidiarity’, Jovan Kurbalija proposes a distinctive roadmap for Switzerland to navigate the rapidly evolving landscape of AI. Rather than mimicking the AI power plays of the US or China, Kurbalija argues that Switzerland can lead by integrating three national strengths: Zurich’s thriving innovation ecosystem, Geneva’s global leadership in governance, and the country’s foundational principle of subsidiarity, rooted in local decision-making.

Last week in Geneva

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The Human Rights Council opened its 59th session on 16 June and is now in full swing. This week, the HRC has considered:

  • The Report of the Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression, titled ‘Freedom of expression and elections in the digital age’ (A/HRC/59/50)
  • The Report of the Working Group on the issue of human rights and transnational corporations and other business enterprises, titled ‘Artificial intelligence procurement and deployment: ensuring alignment with the Guiding Principles on Business and Human Rights’ (A/HRC/59/53). 

The ITU Council has also kicked off this week. Some of the things on the agenda in the last few days are: 

The European Broadcasting Union held its annual Media Cybersecurity Seminar. The 2025 programme included sessions on broadcast infrastructure security, cloud and hybrid environments, ransomware mitigation, regulatory updates, and the integration of security practices into media workflows.
CERN hosted Sparks! 2025 – Imagining Quantum City at the CERN Science Gateway in Geneva, bringing together scientists, urban planners, and the public to explore how quantum technologies could shape the cities of the future. The event offered a balanced glimpse into the possibilities of quantum technologies, grounded in current scientific developments.

For the main updates, reflections and events, consult the RADAR, the READING CORNER and the UPCOMING EVENTS section below.

Join us as we connect the dots – from daily updates to main weekly developments – to bring you a clear, engaging monthly snapshot of worldwide digital trends.

DW Team


RADAR

Highlights from the week of 13 – 20 June 2025

TikTok new image 2

Caught between global politics and a massive American user base, TikTok’s fate hangs in the balance as the clock resets once again.

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Stablecoins offer Latin Americans a vital dollar proxy, helping preserve value amid currency controls and economic instability.

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Beijing wants to reshape global finance with a multipolar currency model, reducing dependence on the US dollar and euro.

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New US law clears the way for banks to issue stablecoins and run blockchains, promising faster, regulated payments for clients.

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Cybersecurity experts warn of increased phishing and identity theft risks following the discovery of 30 massive leaked datasets.

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UK security services told to prepare for AI-led terror scenarios.

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AWS is helping customers comply with the EU AI Act through certified tools, responsible AI frameworks, and guidance on prohibited practices.

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Expiring options often push prices toward ‘max pain’ levels, where most contracts expire worthless, increasing short-term uncertainty.

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A growing legal battle over online age checks is putting national authority to the test against the backdrop of the EU digital law.

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As Americans increasingly scroll instead of switch channels, the way we engage with news is undergoing a seismic transformation that challenges the very foundations of traditional journalism.

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The proposal calls for formal recognition of Bitcoin as a strategic asset and tax exemption for holders.

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Project Crystal Land could be SoftBank’s most ambitious venture, with AI-driven robotics and automation production backed by Vision Fund startups and global tech partners.

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Cloudflare plans a tool to block unauthorised content scraping.


READING CORNER
Advancing Swiss AI Trinity featured image

Switzerland can inspire global AI transformation by leveraging its unique strengths: Zurich’s entrepreneurial spirit, Geneva’s governance expertise, and a focus on communal subsidiarity.

blog scientific revolutions

Scientific breakthroughs aren’t lightning strikes of genius. They grow out of collective effort, practical tools, and the long churn of disagreement. Aldo Matteucci writes.

Gulf AI deals mark a new era for AI diplomacy

How is AI changing the way countries interact and hold power in the world? Find out how nations in the Middle East are teaming up on AI projects, the emergence of competing groups led by the US, China, and Russia, and what these developments could mean for the future of relationships between countries.

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The OEWG on cybersecurity (2019–2025) shaped global debates on digital security, but did it deliver? External experts weigh in on its lasting impact, while our team, who tracked the process from day one, dissect the milestones and missed opportunities.

UPCOMING EVENTS
37th annual FIRST conference
22 Jun 2025 – 27 Jun 2025

The event aims to promote worldwide coordination and cooperation among computer security and incident response teams (CSIRTs).

IGF2025
23 Jun 2025 – 27 Jun 2025
The Government of Norway will host the 20th annual Internet Governance Forum (IGF) in Lillestrøm from 23 to 27 June 2025.
IGF 2025
23 June 2025 – 27 June 2025
Diplo/GIP at IGF 2025 The 20th annual meeting of the Internet Governance Forum (IGF) will be hosted by the Government of Norway, in Lillestrøm, from 23 to 27 June.
UNESCO logu blue background
24 Jun 2025 – 27 Jun 2025
Thailand will host the 3rd UNESCO Global Forum on the Ethics of Artificial Intelligence from 24 to 27 June 2025.
Countering misinformation with digital tools Launch of WHO family planning digital content repository
25 Jun 2025 15:00h – 16:00h

The webinar will launch the toolkit, showcase WHO’s efforts to promote validated content, and discuss how digital tools can expand access to family planning information.

cgdhi who interoperability webinar flyer 25 june
25 Jun 2025 16:00h – 17:30h

The event will reflect on scalable approaches to health data exchange and foundational digital architecture.

IEC webinar Deepfake threats and detection standards for digital authenticity
26 Jun 2025 13:00h – 14:00h

The webinar will explore the technology behind deepfakes, their societal impact, and current efforts to combat these threats.