Senior European Central Bank (ECB) officials said President Donald Trump’s aggressive push for crypto adoption could promote financial instability, urging EU policymakers to strengthen their regulatory stances to mitigate potential fallout.
François Villeroy des Garhau, governor of the Bank of France and member of the ECB’s governing council, said in an interview with French news outlet La Tribune Dimanche that the US will “be committed a crime of negligence” by prioritizing encryption-friendly policies without proper surveillance.
He argued that by “encouraging crypto assets and non-bank finances,” the US is “sowing seeds of future tumultuous changes,” adding that the financial crisis has historically “often born from the US and spread worldwide.”
Villeroy de Galhau’s comments reflect growing concern among European regulators about Trump’s importance to digital assets. Since taking office, the Trump administration has taken a series of steps to integrate crypto into the financial system.
These include signing executive orders establishing strategic Bitcoin reserves, creating a presidential working group on digital assets, and pushing for legislative reforms that roll back Biden-era restrictions on crypto banking.
Criticism of the ECB is growing
The ECB has repeatedly warned against the risks of Crypto’s economic policy, warning that a shortage of regulatory safeguards could cause turbulence in the market. In a report last year, central banks criticized the speculative nature of cryptos and labeled them as “very unstable and inappropriate as reliable forms of money.”
ECB President Christine Lagarde has also spoken out about the dangers of large-scale crypto adoption, previously describing Bitcoin as a “speculative asset of intrinsic value” and warned that unregulated digital assets could undermine economic stability.
Earlier this year, the ECB announced a two-phase initiative to develop blockchain-based settlements, demonstrating its preference for a controlled, state-backed approach to digital assets. The plan includes establishing a central bank’s digital currency (CBDC), known as the digital euro. This claims that banks offer secure alternatives to privately issued cryptocurrencies.
Despite Trump’s custody stance, financial markets are responding with volatility. Bitcoin has recently fallen below $80,000, more than 25% from its January high amid investors’ uncertainty about US economic policy. Stocks were also hit. The S&P 500 fell more than 10% from its February peak after Trump threatened to impose a 200% tariff on the European spirit.
Europe has economic impacts
Villeroy de Garhau urged European leaders to “strengthen their negotiating 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 satisfied in the face of Washington’s changing financial landscape.
As the ECB advances its digital payments infrastructure, it appears that European regulators are positioning themselves as a offset to the US deregulation approach. This disparity underlines the fundamental conflicts of financial philosophy. It can shape the future of global markets.
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