French Central Bank Governor François Villeroy de Galhau sounded the alarm on US President Donald Trump’s support for crypto. He warned that his policies could sow the seeds of the next global financial crisis.
Trump’s pro-crypto stance started in the run-up to the presidential election in November 2024. The policies he declared in his manifesto for the presidential bid significantly contributed to his reelection as digital asset proponents sought to ouster the anti-crypto regime.
France’s Villeroy de Galhau Calls Out Trump
In an interview with local French media, Villeroy de Galhau expressed concerns that the US administration’s push for crypto-assets and non-bank finance could lead to severe economic disruptions.
“Financial crises often originate in the United States and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals,” he stated.
This criticism follows Trump’s recent executive order to create a Strategic Bitcoin Reserve and a separate stockpile of digital assets. The move and his broader pro-crypto stance have been controversial among financial experts, who fear it could destabilize global markets.
Specifically, de Galhau’s warning comes after a significant market downturn triggered by Trump’s executive order. Last week, Bitcoin crashed below $85,000, leading to $250 million in liquidations across the crypto market. The sudden sell-off highlighted the inherent volatility of digital assets and raised fresh concerns about the risks of government-backed crypto investments.
Furthermore, Trump is reportedly planning an executive order to overturn Operation Choke Point 2.0, a regulatory policy restricting crypto firms’ banking access. By reversing this policy, Trump aims to further integrate crypto into the traditional financial (TradFi) system. However, critics argue this could expose banks and investors to unprecedented risks.
Among the renowned personalities against Trump’s pro-crypto rhetoric is Peter Schiff, a well-known Bitcoin skeptic. He harshly criticized Trump’s Strategic Bitcoin Reserve, calling it “the biggest crypto rug pull of all time.” Schiff argues that the policy could lead to market manipulation and loss of public funds. He also warned that it may be designed to benefit insiders at the expense of regular investors.
Adding to these concerns, a recent poll found that most US voters oppose Trump’s push for a national Bitcoin reserve. Many Americans worry that taxpayer money could be wasted on a highly volatile asset, especially given Bitcoin’s recent market instability.
Europe to Push for Stability
Meanwhile, de Galhau emphasized that Europe must be more cautious and strengthen its financial safeguards to avoid fallout from US policies. Beyond the new tariffs on Canada, a key concern for France is the 25% imposed against the European Union.
“We have made a decision and we’ll be announcing it very soon. It’ll be 25% generally speaking, and that will be on cars and all other things,” Trump said in a recent Cabinet meeting.
Against this backdrop, de Galhau reiterated the importance of enhancing the euro’s global role. Specifically, he calls on the country to establish a strong savings and investment union to attract international investors.
“Donald Trump seems to harbor this false vision that the global economy is a zero-sum game… He sees it like a Monopoly board; with a fixation on trade deficits… We must not respond to this brutality with passivity or inevitability, but with will…we undoubtedly need to establish a balance of power to put ourselves in a position to negotiate. …let us not miss this opportunity to awaken and strengthen Europe,” he added.
As Trump’s pro-crypto policies continue to reshape the financial sector, global leaders remain divided on the potential consequences. With market volatility on the rise and regulatory uncertainty growing, the debate over the future of cryptocurrency in national economies is far from settled.
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