Francois Villeroy de Galhau, the governor of Banque de France and a member of the European Central Bank Governing Council, criticizes U.S. President Donald Trump for backing cryptocurrencies. In an interview with French weekly La Tribune Dimanche, Villeroy de Galhau expressed concerns that the U.S. might be setting the stage for the next financial crisis by embracing cryptocurrencies and non-bank finance. He warned that “the United States risks sinning through negligence” and suggested that encouraging crypto-assets and non-bank finance could lead to future global financial upheavals.
Historically, three of the five biggest financial crises began in the U.S., including The Great Depression following the 1929 Wall Street crash, the 1973 OPEC Oil Price Shock, and the Great Recession triggered by the collapse of the U.S. housing market bubble.
Villeroy de Galhau has openly criticized Trump’s policies, being one of the first economists to express concerns about Trump’s approach to regulation. On January 15, he warned that the lack of regulation in areas like non-banks and crypto-assets could threaten financial stability. Recently, he called Trump’s trade wars and economic policies a “tragedy for the American economy.” He is not alone in his criticism; German central bank chief Joachim Nagel described Trump’s policies as “economic policy from a horror show.”
Since Trump’s tenure, there has been a notable shift in U.S. administration’s handling of digital assets, such as the Securities and Exchange Commission (SEC) dropping significant cases against crypto exchanges, including Coinbase. Trump also established a crypto strategic reserve to stockpile tokens like Bitcoin and Ethereum. Villeroy de Galhau views the current wave of American deregulation as “dangerous.”
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