Francois Villeroy de Galhau, the governor of Banque de France and the member of the Council of the European Central Bank, believes that US President Donald Trump is making a big mistake by supporting cryptocurrencies.
In an interview with the French Weekly La Tribune Dimanche, Villeroy de Galhau said that the US might release the way for the next financial crisis by embracing cryptocurrencies and non-banking finances. He said that, “The United States run the risk of sinning negligence,” adding that:
“Financial crises often come from the United States and spread to the rest of the world. By encouraging crypto-assets and non-banking finances, the American administration sows the seeds of future revolutions. “
Three of the five largest financial crises have emerged in the US, this includes the large depression, activated by the Wall Street -Crash in 1929, the OPEC oil price shock of 1973, when members of the organization of the petroleum -exhibitory countries the oil export to the US and the large recession.
Villeroy de Galhau has been openly critical of Trump’s policy
Villeroy de Galhau was one of the first economists to express his concern about Trump and his policy, even before the inauguration of Trump in January. On January 15 he said:
“I believe that what we sometimes hear in the United States about the lack of non-banking regulation, the various funds (…) or the lack of regulation of crypto-assets is something that would endanger financial stability.”
Earlier this week, Villeroy de Galhau said that Trump’s trade wars and economic policy is a ‘tragedy for the American economy’.
Villeroy de Galhau is not alone in his criticism. German central bank chef Joachim Nagel mentioned the recently ‘economic policy of a horror show’.
Deregulation in the US is “dangerous”
Since Trump has come to power, there has been a clear shift in how the administration deals with digital assets. The Securities and Exchange Commission (SEC), for example, has dropped important things against crypto exchanges, including Coinbase.
Trump has also created a crypto strategic reserve, whereby the US will save tokens such as Bitcoin (BTC) and Ethereum (ETH).
Villeroy de Galhau believes that “the current wave of American deregulation is dangerous.”