cryptonewsz.com
Francois Villeroy de Galhau, a member of the European Central Bank’s Governing Council, has expressed concerns that the United States could be setting the stage for the next global financial crisis through its endorsement of cryptos and non-bank finance.
US Crypto Support: An Alarm for Global Finance?
In an interview with the French publication La Tribune Dimanche, Villeroy stated, “The United States risks making a mistake due to inaction.” He noted that many financial crises have historically originated in the US and then spread worldwide. He believes that by encouraging the use of crypto-assets and expanding non-bank financial services, the US government is planting the seeds for potential future turmoil.
Villeroy also pointed out that Europe’s financial regulations are more robust, and emphasized that there is no immediate threat of a banking crisis within the European Union.
In a separate interview, Villeroy suggested that Europe should aim to strengthen the Euro’s global influence and focus on creating a “strong savings and investment union” that would attract more international investors to the European currency.
US President Donald Trump became a vocal advocate for cryptocurrencies during his presidential campaign, and he signed an executive order proposing the creation of a Strategic Bitcoin Reserve, alongside stockpiles for other digital assets. Meanwhile, the US Securities and Exchange Commission (SEC) has dismissed several legal actions against crypto firms since Trump took office, following the resignation of former SEC Chair Gary Gensler.
In contrast, other nations have opted not to establish a cryptocurrency reserve. For example, South Korea has ruled out plans for a Bitcoin reserve, citing similar moves by the European Central Bank, the Swiss National Bank, and the Japanese government.