A senior official of the European Central Bank (ECB) said that the aggressive urge of President Donald Trump could feed the financial instability to accept cryptability and urged EU policy makers to strengthen their regulatory position to reduce the possible consequences.
François Villeroy de Galhau, Governor of the Bank of France and member of the ECB Council, said in an interview with the French news loss La Tribune Dimanche that the US “running the risk by sinning negligence” by giving priority to crypto-friendly policy without sufficient supervision.
He argued that by “encouraging” crypto-assets and non-banking finances “, the US” sows the seeds of future revolutions “, adding that financial crises were historically” often originated in the United States and spread to the rest of the world “.
Villeroy de Galhau’s comments reflect a growing concern between European regulators about Trump’s pivot to digital assets. Since the return to the office, the Trump administration has taken a series of steps to integrate crypto into the financial system.
These include the signing of an executive order that establishes a strategic Bitcoin reserve, forms a presidential working group for digital assets and insist on legislative reforms that would reduce the limitations of Biden era on crypto-banking.
ECB’s growing criticism
The ECB has repeatedly warned against the risks of a pro-Crypto-economic policy, warning that a lack of regulatory guarantees could cause market turbulence. In a report last year, the Central Bank criticized the speculative character of Crypto and labeled it as “very volatile and unsuitable as a reliable form of money.”
ECB president Christine Lagarde has also been spoken about the dangers of large-scale crypto adoption, which Bitcoin described earlier as “a speculatively active without intrinsic value” and warns that non-regulated digital assets can undermine financial stability.
Earlier this year, the ECB announced a two-phase initiative to develop settlements based on blockchain, which the State supported by the State indicates digital assets. The plan includes setting up Central Bank Digital Currency (CBDC) called the Digital Euro, the bank claims that it would offer a safer alternative to private -published cryptocurrencies.
Despite Trump’s pro-Crypto attitude, the financial markets with volatility have responded. Bitcoin recently tumbled under $ 80,000 – more than 25% compared to the January of $ 109,000 – in the midst of investment uncertainty on US economic policy. Equits have also taken a hit, in which the S&P 500 fell more than 10% compared to the peak of February after Trump threatened to impose 200% rates on European minds.
Europe brace for economic impact
Villeroy de Galhau urged the European leaders to “strengthen their negotiating position against the US”, with the argument that Trump’s economic policy is based on a “false vision” of the world economy as a zero-sum game. He warned that Europe should not be complacent with the changing financial landscape of Washington.
While the ECB continues with its digital payment infrastructure, European regulators seem to position themselves as a counterbalance to the Gedulated Approach of the US. The gap emphasizes a fundamental collision in financial philosophy – one that could be the future of the world markets.
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