François Villeroy de Galhau, the Governor of the French Central Bank, has raised alarms about Donald Trump’s pro-crypto policies. He warns that these policies could lead to economic instability, not just in the U.S. but globally. Villeroy believes that the U.S. government’s support for crypto and deregulation may trigger financial turmoil.
Trump’s pro-crypto stance has been significant in his re-election campaign, attracting supporters from the digital asset community. Since his return to office, his administration has initiated plans that have sparked controversy among financial experts.
Villeroy is particularly concerned that the U.S. push for cryptocurrencies and non-bank financial services could disrupt global markets, as financial crises often start in the U.S.
Recently, Trump announced the creation of a Strategic Bitcoin Reserve, which has ignited discussions about government involvement in digital assets. This move, along with plans to reverse policies that restrict crypto firms’ access to banking, indicates a shift in U.S. financial policy. Critics argue that these actions could increase risks for investors and traditional banks.
The impact of these policies is already visible. Bitcoin’s price recently fell below $85,000 after Trump’s executive order, resulting in significant liquidations. This incident underscored the volatility of crypto markets and raised concerns about government-backed investments in digital assets.
Economist Peter Schiff, a Bitcoin skeptic, has criticized Trump’s Strategic Bitcoin Reserve, calling it a potential market manipulation scheme. He warns that such policies could harm regular investors while benefiting insiders. Public sentiment reflects this concern, as many American voters oppose the national Bitcoin reserve, fearing misuse of taxpayer funds.
In contrast, Europe is adopting a cautious approach. Villeroy urges the European Union to strengthen the euro’s global role and create a solid investment framework. He emphasizes that Europe must act decisively in response to U.S. financial policies.
As Trump continues to advocate for a crypto-friendly system, the debate over digital assets intensifies. Supporters view it as a path to innovation, while critics highlight the risks of instability and excessive government involvement. The future of cryptocurrency in national economies remains uncertain.
