Francois Villeroy de Galhau on Cryptocurrencies

Francois Villeroy de Galhau, the governor of Banque de France and a member of the European Central Bank Governing Council, believes that U.S. President Donald Trump is making a significant mistake by supporting cryptocurrencies.

In an interview with the French weekly La Tribune Dimanche, Villeroy de Galhau expressed concern that the U.S. might be paving the way for the next financial crisis by embracing cryptocurrencies and non-bank finance. He stated, “The United States risks sinning through negligence,” adding that:

> “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.”

Three of the five largest financial crises originated in the U.S., including:
– The Great Depression, triggered by the Wall Street crash in 1929
– The OPEC Oil Price Shock of 1973
– The Great Recession, caused by the collapse of the U.S. housing market bubble

Villeroy de Galhau’s Criticism of Trump’s Policies

Villeroy de Galhau has been openly critical of Trump since before his inauguration. On January 15, he stated:

> “I believe that what we sometimes hear in the United States about the lack of regulation of non-banks, the various funds, or the lack of regulation of crypto-assets is something that would put financial stability at risk.”

Earlier this week, he labeled Trump’s trade wars and economic policies as a “tragedy for the American economy.” He is not alone in his criticism; German central bank chief Joachim Nagel referred to it as “economic policy from a horror show.”

The Dangers of Deregulation in the U.S.

Since Trump took office, there has been a noticeable shift in how the administration approaches digital assets. For example, the Securities and Exchange Commission (SEC) has dropped significant cases against crypto exchanges, including Coinbase. Trump has also initiated a crypto strategic reserve to stockpile tokens such as Bitcoin (BTC) and Ethereum (ETH).

Villeroy de Galhau warns that the current wave of American deregulation is “dangerous.”