Francois Villeroy de Galhau, a member of the European Central Bank’s Governing Council, warned that the United States’ growing support for cryptocurrencies and non-bank finance could set the stage for a future financial crisis.
In an interview with French weekly La Tribune Dimanche, Villeroy stated, “The United States risks sinning through negligence.” He noted that financial crises often begin in the US and then spread worldwide. “By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals,” he added.
European Banking Sector Safer, Villeroy Says
Villeroy reassured that Europe’s banking sector is better supervised and, as a result, is not at risk of facing a banking crisis. He emphasized that European financial oversight is stronger than that of the US, offering greater stability to the region.
Villeroy Advocates for a Stronger Euro on the Global Stage
In the same interview, Villeroy expressed his belief that the euro should play a more prominent role in the global economy. He argued that Europe needs to create a “powerful savings and investment union” that would attract international investors and strengthen the euro’s standing in global markets.
Trump’s Support for Cryptocurrencies
Villeroy’s comments come as US President Donald Trump continues to support the cryptocurrency sector. During last year’s campaign, Trump became an outspoken advocate for digital assets, even signing an executive order to establish a Strategic Bitcoin Reserve and separate stockpiles of other cryptocurrencies.
The US Securities and Exchange Commission (SEC) has also recently dismissed several legal actions against crypto companies, following the resignation of former SEC Chair Gary Gensler when Trump assumed office.
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