France’s central bank governor cautioned that Trump’s pro-crypto measures, such as the Strategic Bitcoin Reserve, might cause global financial turmoil.
Donald Trump’s pro-crypto policies have drawn harsh criticism from French Central Bank Governor François Villeroy de Galhau, who has described them as a possible cause of economic instability. He thinks that the U.S. administration’s deregulation and support for digital assets could lead to financial instability that extends outside of the country.
Trump’s stance on cryptocurrency played an important role in his re-election campaign, attracting digital asset supporters eager to succeed the previous anti-cryptoadministration. taking office, his administration has implemented policies that have sparked debate among financial experts.
Concerns about major disruptions could arise from the United States’ push for cryptocurrency and non-bank financial services, according to Villeroy de Galhau. To him, financial crises frequently begin in the United States and have an effect on international markets. might be creating instability in the future by further integrating cryptocurrency into the financial system.
Trump recently announced the establishment of a Strategic Bitcoin Reserve in an executive order, which sparked discussion about government participation in digital assets. action marks a significant change in U.S. financial policy, as does a proposed executive order to revoke Operation Choke Point 2.0, a rule that denied crypto companies access to banking services. Such measures, according to critics, raise risks for traditional banks as well as investors.
These regulations have already had an effect. The price of Bitcoin fell below $85,000 last week after Trump’s executive order, resulting in $250 million in liquidations. incident brought attention to how volatile cryptocurrency markets can be and sparked worries about the possible dangers of government-backed investments in digital assets.
Peter Schiff, a long-time Bitcoin critic and economist, has openly condemned Trump’s Strategic Bitcoin Reserve. termed it “the biggest crypto rug pull of all time” and warned that it might lead ordinary investors to lose money while manipulating the market. Worries are consistent with broader concerns that these markets may reward insiders while putting taxpayers at risk.
The majority of American voters are against Trump’s proposal for a national Bitcoin reserve, according to a recent survey. Many worry that taxpayer dollars might be misappropriated for an erratic asset, particularly in light of the recent fluctuations in the value of Bitcoin. administration may face difficulties as it advances its crypto agenda as a result of this public opinion.
Meanwhile, Europe is taking a more cautious approach, aiming to strengthen its financial stability in response to U.S. policy shifts.
De Galhau has urged the European Union to strengthen the euro’s global role by establishing a strong savings and investment framework. The message is clear: Europe must take decisive action rather than passively accepting the consequences of US financial policy. It was also paying close attention to Trump’s new trade tariffs, particularly the 25% duty on European cars The French government interprets this as part of Trump’s aggressive economic strategy, which regards global trade as a zero-sum game. Galhau believes that Europe should assert itself and negotiate from a position of strength rather than simply reacting to US actions.
As Trump continues to advocate for a crypto-friendly financial system, the global debate over digital assets rages on. Supporters see this as a step forward in financial innovation, while critics warn of instability, market manipulation, and the dangers of excessive government involvement in volatile assets. market fluctuations worsening and regulatory uncertainties growing, the future of cryptocurrency in national economies is far from certain.
By :- Next Tech Plus
