A European Central Bank (ECB) official has cautioned that President Donald Trump’s pro-crypto policies could lead to global financial instability.
Francois Villeroy de Galhau, Governor of the Bank of France and ECB Governing Council member warned that the U.S. risks negligence by embracing crypto-assets and non-bank finance under Trump.
“The United States risks sinning through negligence,”
Villeroy told La Tribune Dimanche in an interview published Saturday, March 15.
Since returning to office, Trump has moved to make the U.S. the “crypto capital of the world”, a continuation of his pro-crypto campaign promises.
On March 7, White House AI and Crypto Czar David Sacks announced that Trump signed an executive order to establish a Strategic Bitcoin Reserve and a “Crypto Asset Stockpile”. The reserve will be funded without taxpayer money, using Bitcoin seized through federal asset forfeitures. Sacks estimated that the U.S. government holds around 200,000 BTC, though a full audit has not yet been conducted.
Villeroy cautioned that U.S. support for crypto could trigger a financial crisis, emphasizing that previous crises have often originated in the U.S. before spreading globally. He believes current U.S. policies could lay the groundwork for future economic instability.
His stance aligns with ECB President Christine Lagarde, who has consistently criticized Bitcoin and decentralized finance (DeFi), arguing they pose financial stability risks. Lagarde has also stated that no European central bank would adopt Bitcoin as a reserve asset.
The ECB is not alone in its scepticism. The International Monetary Fund (IMF) has also warned about crypto risks. In a recent move, the IMF pressured El Salvador to halt Bitcoin accumulation as a condition for securing $1.4 billion in funding.
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