ECB Official Warns U.S. Crypto Policies Could Threaten Global Financial Stability
Francois Villeroy de Galhau, a prominent figure at the European Central Bank (ECB), has raised alarms over the Trump administration’s policies toward cryptocurrency, warning that they could destabilize global financial markets.
In a recent interview, Villeroy expressed concerns that the U.S.’s increasing support for crypto-assets and decentralized finance could trigger future economic crises that would eventually spread worldwide.
Villeroy, who also serves as the governor of France’s central bank, argued that Europe’s more cautious approach to crypto regulation has put it in a stronger position to avoid banking crises.
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He also underscored the ECB’s initiative to introduce a digital euro, which he sees as a countermeasure to the U.S. push for stablecoins pegged to the dollar. According to ECB officials, this move aims to protect the European financial system from the destabilizing effects of private-sector digital currencies.
However, the ECB’s own digital currency ambitions have encountered resistance, especially after the recent failure of its TARGET2 payment system. The system’s temporary shutdown has sparked doubts about the ECB’s ability to manage a digital euro. Critics, such as German lawmaker Markus Ferber, have questioned whether the ECB can effectively oversee such a currency when its existing infrastructure has proven unreliable.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
