Recently, Francois Villeroy de Galhau, the governor of Banque de France and a member of the European Central Bank Governing Council, expressed his concerns about U.S. President Donald Trump’s support for cryptocurrencies. In an interview with French weekly La Tribune Dimanche, Villeroy de Galhau warned that the U.S. may be setting itself up for another financial crisis by embracing cryptocurrencies and non-bank finance. He stated that the United States could be “sowing the seeds of future upheavals” by promoting these alternative financial assets.
Villeroy de Galhau’s criticism of Trump’s policies is not new. Even before Trump’s inauguration, he had already raised alarms about the potential risks of the administration’s approach to regulating non-banks and crypto-assets. The governor has been vocal about his concerns, stating that the lack of regulation in these areas could jeopardize financial stability.
The history of financial crises in the United States serves as a cautionary tale. From the Great Depression to the Great Recession, the U.S. has been at the center of some of the most significant economic downturns in modern history. Villeroy de Galhau’s warnings about the potential consequences of Trump’s embrace of cryptocurrencies are based on this historical context.
In addition to Villeroy de Galhau’s criticisms, other prominent figures in the financial world have also spoken out against Trump’s economic policies. German central bank chief Joachim Nagel referred to Trump’s approach as “economic policy from a horror show,” highlighting the widespread concerns about the direction of U.S. economic policy under the current administration.
One key area of concern for Villeroy de Galhau is the wave of deregulation in the U.S. since Trump took office. The Securities and Exchange Commission (SEC) has dropped major cases against crypto exchanges, and the administration has even established a crypto strategic reserve, stockpiling tokens like Bitcoin and Ethereum. Villeroy de Galhau views this deregulation as “dangerous,” emphasizing the potential risks it poses to the stability of the financial system.
Overall, Villeroy de Galhau’s warnings about the implications of Trump’s support for cryptocurrencies should not be taken lightly. As the governor of Banque de France and a member of the European Central Bank Governing Council, his insights carry weight in the global financial community. It remains to be seen how the U.S. will navigate the challenges posed by the intersection of cryptocurrencies and traditional finance under the current administration.