During an interview the top leader of Banque de France and European Central Bank Governing Council member Francois Villeroy de Galhau warned against U.S. President Donald Trump’s cryptocurrency-friendly policies. During his interview with La Tribune Dimanche Villeroy de Galhau said “The United States risks committing negligence errors” while also saying “When the American administration supports crypto-assets and non-bank finance they seed possible financial disruptions for the future.”
Historical Context of Financial Crises
The French central banker emphasized that financial crises started in the United States three times before becoming international disasters. The United States experienced three major financial turmoil apart from its initial history: The Great Depression after the 1929 Wall Street collapse followed by The OPEC Oil Price Shock of 1973 then continued to the Great Recession which stemmed from the U.S. housing market’s downfall. The expert believes such moves towards crypto deregulation might produce another worldwide economic disaster.
Consistent Criticism of Trump’s Policies
The economic approach that Trump has been using receives persistent criticism from Villeroy de Galhau. The French official expressed concern on January 15 that the United States should avoid deregulating non-bank financial institutions and crypto-assets due to risks affecting financial stability. The current head of French central banking labeled Trump’s economic leadership through trade wars along with his financial policies as a disastrous event for America’s economic health.
Growing European Concern
The French central banker stands alongside many others who share his critical stance. Global financial leader Joachim Nagel described Trump’s economic policies as a frightening money management system that has generated increasing European apprehension.
Specific Concerns About Deregulation
The Trump administration has shown significant change in its digital assets policy through obvious actions such as dropping major SEC crypto exchange cases and building a crypto strategic reserve to hold Bitcoin and Ethereum. Villeroy de Galhau pointed out that the current American deregulation movement creates dangerous risks.
Strong Warnings Against Crypto Policy
Villeroy de Galhau demonstrates international concern about persistent risks stemming from the quick surge of cryptocurrency usage and loosening regulation in the United States. His position as a major European central banker allows him to present European financial stability concerns related to evolving U.S. cryptocurrency regulations.
