French Central Bank Governor Warns Trump’s Crypto Policies May Trigger Instability
French Central Bank Governor François Villeroy de Galhau warns that Donald Trump’s pro-crypto policies could trigger economic instability. He asserts that U.S. support for digital assets and deregulation might lead to financial turmoil affecting global markets.
- Trump's stance on cryptocurrency is integral to his re-election campaign, attracting advocates seeking a shift from previous anti-crypto policies.
- Villeroy de Galhau expresses concerns that U.S. crypto integration may disrupt financial systems, noting that crises often start in the U.S.
- Trump's recent executive order includes plans for a Strategic Bitcoin Reserve and proposes reversing Operation Choke Point 2.0, which limited banking access for crypto firms.
- These actions have resulted in Bitcoin's price dropping below $85,000, leading to $250 million in liquidations, highlighting market volatility.
- Critics like economist Peter Schiff label the Strategic Bitcoin Reserve as potentially manipulative and risky for investors.
- A recent survey indicates most American voters oppose Trump's national Bitcoin reserve due to fears of taxpayer fund misuse.
- Europe is adopting a cautious approach, emphasizing the need to reinforce the euro’s role and create a stable investment framework.
- De Galhau advocates for Europe to negotiate assertively against U.S. economic strategies, including new trade tariffs.
The ongoing debate over digital assets reflects divergent views: proponents see potential for innovation, while opponents caution against instability and excessive government intervention.