Is the euro doomed to drift with monetary policies and geopolitical tensions?

Michael Saylor, a prominent figure in bitcoin, is convinced of this. In a striking tweet — ” EUR gonna need BTC ” — the CEO of MicroStrategy warns about the future of the European currency.

"EUR gonna need BTC for this one."

This striking tweet from Michael Saylor, a prominent figure in bitcoin, sums up the ironic situation Europe finds itself in. As the U.S. rapidly integrates cryptos, the Eurozone remains hesitant, caught between the need for sovereignty and the risk of obsolescence.

Recently, however, a sense of urgency has crept into the usually stoic pronouncements of European finance officials. At a meeting on March 10, officials expressed irritation with the United States’ rapid crypto integration, especially in the wake of President Donald Trump’s decree authorizing a state bitcoin reserve.

This move, which saw the U.S. go from skeptical spectators to masters of the game, has put Europe in a difficult position, fear being the main driver.

“The foreign policies have major consequences for us,” said Paschal Donohoe, president of the Eurogroup, the body of European Union finance ministers.

Edible irony

A euphemism for the risings of a battered euro if the dollar, aided by ubiquitous stablecoins, manages to exert undue dominance.

Moreover, this crypto initiative unleashes an old European nightmare: the loss of sovereignty, a topic that came up during the 2020 launch of Facebook’s Libra project. Back then, the move prompted the European Central Bank (ECB) to accelerate plans for a “digital euro.”

But Diem (formerly Libra) ultimately collapsed in 2022, leaving Europe with a stark choice: invent its own digital currency or accept that other nations or private actors will forge ahead.

“Without a digital euro, the dollar will become the dominant currency in private digital money,” said Philip Lane, chief economist at the ECB.

The numbers bear this out: 99% of stablecoins are pegged to the greenback, silently asserting its hegemony, which could relegate the euro to a secondary role in daily payments.

But perhaps the real Achilles’ heel for Europe is the tech giants. Apple Pay, Google Pay, and PayPal already control 80% of digital transactions in the Old Continent. These actors, mostly American, could soon integrate dollar-denominated stablecoins, creating a system dependency.

Double threat: Tech giants and stablecoins

Faced with this double threat — technological and monetary — the ECB is counting on the digital euro to regain control. As Lane put it, it would be “a universal payment solution, with European governance.”

However, this project is still mired in bureaucratic procedures. Meanwhile, bitcoin, decentralized and stateless, is steadily gaining market share.

The transition from the digital euro to bitcoin seems inevitable. If the former is a shield, the latter could be the sword. While Europe deliberates, Saylor highlights the essence: cryptos are not merely a payment instrument but also a hedge against monetary deterioration.

Could bitcoin, in its decentralized form, be the savior that Europe needs?

The irony is striking. Europe, the cradle of banking innovation, finds itself lagging behind in the digital age. Its digital euro project, initially conceived as a response to Libra, arrives rather late on the scene. Dollarized stablecoins and Big Tech have already set the stage.

On the other hand, Michael Saylor has a broader vision. Bitcoin is not just an alternative to traditional currencies; it is a hard asset, deflationary in nature and not subject to the whims of central bankers.

While the ECB tries to maintain control of the narrative with its project, BTC embodies individual sovereignty—a concept that can be unsettling but also liberating.

And if the euro manages to survive by forging an alliance with bitcoin? For now, Brussels maintains its stance on regulatory priorities. But faced with the rapid pace of American crypto integration, the vise is tightening. As one official noted, “Europe does not have the luxury of time.”

Michael Saylor has lit a fuse with his tweet, and it remains to be seen if Europe will heed the warning. Without bitcoin, the euro risks becoming obsolete, suffocated by the dollar and stablecoins. The single currency must choose: adapt or disappear. The countdown has begun.output: