A senior European Central Bank (ECB) said that the aggressive pressure from President Donald Trump for the adoption of cryptography could fuel financial instability and urge EU political decision -makers to strengthen their regulatory position to mitigate potential repercussions.
François Villeroy de Galhau, governor of the Banque de France and member of the board of directors of the ECB, said in an interview with the French media on Sunday that the United States “risks traveling negligence” by prioritizing cryptographic policies without adequate supervision.
He argued that by “encouraging cryptographic assets and non-banking finances”, the United States “sements the seeds of future upheavals”, adding that financial crises are historically “often from the United States and spread to the rest of the world”.
Villeroy de Galhau’s comments reflect an increasing concern among European regulators concerning Trump’s pivot towards digital assets. Since its return to functions, the Trump administration has taken a series of measures to integrate the crypto into the financial system.
These include the signing of a decree establishing a strategic bitcoin reserve, the training of a presidential working group on digital assets and the continuation of legislative reforms that would make restrictions on the Biden era on cryptographic banks.
The growing criticism of the ECB
The ECB has repeatedly warned of the risks of a pro-Crypto economic policy, warning that a lack of regulatory guarantees could trigger market turbulence. In a report last year, the central bank criticized the speculative nature of the crypto, calling them “very volatile and unsuitable for a form of reliable money”.
The president of the ECB, Christine Lagarde, also expressed the dangers of the adoption of large -scale crypto, previously describing Bitcoin as “a speculative asset without intrinsic value” and warning that unregulated digital assets could undermine financial stability.
Earlier this year, the ECB announced a two -phase initiative to develop blockchain -based colonies, signaling its preference for a controlled and supported digital asset approach. The plan includes the establishment of the digital currency of the central bank (CBDC) called the digital euro, which, according to the bank, would provide a safer alternative to private cryptocurrencies.
Despite Trump’s pro-Crypto position, the financial markets responded with volatility. Bitcoin recently dropped below $ 80,000 – down more than 25% compared to its January 109,000 summit – in the midst of investors’ uncertainty in American economic policies. Actions also took a hit, the S&P 500 falling more than 10% of its February summit after Trump threatened to impose 200% of European minds.
Supply of Europe for economic impact
Villeroy de Galhau urged European leaders to “strengthen their negotiation position” against the United States, arguing that Trump’s economic policies are based on a “false vision” of the world economy as a zero-sum game. He warned that Europe should not be complacent against the changing financial landscape of Washington.
While the ECB is growing with its digital payment infrastructure, European regulators seem to position themselves as a counterweight to the deregulated approach in the United States. The ditch highlights a fundamental confrontation of financial philosophy – which could shape the future of world markets.
