French Central Bank Governor Sounds Alarm on Trump’s Crypto and Deregulation Push
French Central Bank Governor François Villeroy de Galhau has warned that Trump’s support for cryptocurrency and deregulation could destabilize global markets. He pointed to historical crises that began in the U.S. and argued that Trump’s policies could trigger similar turmoil.
Trump’s Policies and the Risk of Financial Turmoil
Villeroy de Galhau highlighted how U.S. financial instability often spreads globally. He cited the Great Depression (1929), the OPEC Oil Shock (1973), and the Great Recession (2008) as examples of U.S.-originated crises with worldwide fallout. Trump’s focus on deregulation and crypto, he argued, mirrors past patterns of risky behavior.
Concerns Over Trump’s Crypto Moves
Villeroy’s warning follows Trump’s recent executive order creating a Strategic Bitcoin Reserve and the rollback of Operation Choke Point 2.0, which restricted crypto firms’ access to banking. Critics fear these moves introduce systemic risks.
Bitcoin’s price plunged below $84,000 after the executive order, wiping out over $250 million in liquidations. Economist Peter Schiff argued that such volatility makes Bitcoin unreliable for national reserves and warned that Trump’s approach could benefit insiders while exposing taxpayers to risk.
Trade Tensions and European Response
Villeroy also criticized Trump’s trade policies, including a 25% tariff on European cars, calling them harmful to both the U.S. and Europe. He urged European leaders to strengthen the euro’s role, improve financial independence, and negotiate from a position of strength.
German central bank chief Joachim Nagel echoed Villeroy’s concerns and advocated for a digital euro but rejected Bitcoin for reserves due to lack of transparency and liquidity. Meanwhile, Czech National Bank Governor Aleš Michl remains open to adding Bitcoin to reserves, highlighting divisions within Europe.
Global Financial Order at a Crossroads
As Trump’s policies reshape global finance, Europe faces mounting pressure to respond. Strengthening the euro, exploring digital assets, and addressing trade challenges will define the next phase of international financial stability.
