Why Francois Villeroy de Galhau Thinks Trump’s Support for Cryptocurrencies is a Mistake
Francois Villeroy de Galhau, the governor of Banque de France and a member of the European Central Bank Governing Council, has expressed his concerns about U.S. president Donald Trump’s stance on cryptocurrencies. In an interview with French weekly La Tribune Dimanche, Villeroy de Galhau warned that embracing cryptocurrencies and non-bank finance could potentially lead to the next financial crisis.
“The United States risks sinning through negligence. Financial crises often originate in the United States and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals.”
History of Financial Crises in the U.S.
The U.S. has a history of financial crises, with three of the biggest ones originating in the country. These include The Great Depression in 1929, the OPEC Oil Price Shock in 1973, and the Great Recession triggered by the housing market collapse.
Criticism of Trump’s Policies
Villeroy de Galhau has been vocal in his criticism of Trump’s policies even before his inauguration. He believes that the lack of regulation of non-banks and crypto-assets could put financial stability at risk.
In a recent statement, Villeroy de Galhau described Trump’s trade wars and economic policy as a “tragedy for the American economy,” echoing the sentiments of other global economic leaders.
The Dangers of Deregulation
Since Trump took office, there has been a noticeable shift in the administration’s approach to digital assets. The SEC has dropped major cases against crypto exchanges, and the U.S. has even created a strategic reserve for tokens like Bitcoin and Ethereum.
Villeroy de Galhau views this wave of deregulation in the U.S. as “dangerous” and potentially harmful to the stability of the financial system.
