French Central Bank Governor Raises Concern About Trump’s Pro-Crypto Policies

2025年03月18日

Key Takeaways:

  • French banking leadership warns that U.S. policy shifts could trigger unforeseen financial challenges.
  • A move toward lighter crypto oversight sparks debate over risk exposure.
  • European officials review reform options amid evolving market conditions.
  • Ongoing talks question the role of digital assets in monetary reserves.

In an exclusive interview with French weekly La Tribune Dimanche on March 15, French Central Bank Governor François Villeroy de Galhau cautioned that U.S. President Trump’s policies—particularly his support for digital assets and deregulation—could destabilize the global financial system.

He argued that these measures might introduce new financial risks, warning that such risks often originate in the United States before spilling over into global markets.

How Trump’s Policies Could Trigger Global Financial Upheavals

Villeroy de Galhau explained that Trump’s policies are sowing the seeds of future upheavals.

He emphasized that history has shown how financial crises frequently begin in the U.S. before expanding globally.

He cited historical patterns, noting that three of the past five major financial crises originated in the United States: the Great Depression in 1929, the 1973 OPEC Oil Price Shock, and the 2008 Great Recession. Each had major global repercussions.

Villeroy de Galhau argued that the current trajectory of Trump’s policies—particularly the focus on deregulation and support for digital assets—mirrors risky behaviors that have historically led to financial instability.

French Central Bank Governor’s Crypto Warning on Trump’s Policies

The French central bank governor’s warning comes amid recent U.S. policy shifts concerning cryptocurrency.

President Trump recently signed an executive order announcing the creation of a Strategic Bitcoin Reserve, a move that ignited sharp debate over the federal government’s involvement in digital assets.

Additionally, the proposed rollback of Operation Choke Point 2.0, which previously limited crypto firms’ access to banking services, signals another shift toward deregulation.

Critics argue Trump’s policies on deregulation introduce unnecessary systemic risks, particularly given the volatile nature of crypto markets.

While proponents applaud these decisions as steps toward financial autonomy, the immediate impact has not been without consequence.

Last week, Bitcoin’s price plunged below $84,000 after the executive order was announced, triggering over $250 million in liquidations.

This sharp decline underscored concerns regarding the extreme volatility of digital assets and their potential effect on broader financial stability.

Economist Peter Schiff, a well-known Bitcoin critic, echoed these sentiments, arguing that Bitcoin’s price swings make it an unreliable asset for national reserves.

Schiff warned that Trump’s policies could end up disproportionately benefiting insiders while exposing taxpayers and banks to avoidable risks.

Villeroy de Galhau’s concerns extend beyond cryptocurrencies, touching on broader aspects of Trump’s policies, including trade measures that could further strain international relations.

Europe’s Response to Trump’s Tariffs and Bitcoin Push

Trump’s trade policies have also sparked tension across the Atlantic.

Villeroy de Galhau criticized Trump’s trade strategies, including recent tariff hikes and deregulation efforts, describing them as harmful to the American economy and problematic for European allies.

One focal point is Trump’s introduction of a 25% tariff on European cars.

The decision has raised alarms among European Union leaders, particularly in France.

Villeroy de Galhau stressed that Europe must avoid reacting passively to such moves and instead negotiate from a position of strength.

To safeguard financial stability, European leaders are exploring several measures. Villeroy de Galhau has called for strengthening the euro’s global role, improving Europe’s savings and investment framework, and enhancing financial independence.

His message is clear: Europe must take decisive action to shield itself from the ripple effects of Trump’s policies.

German central bank chief Joachim Nagel shares similar concerns. He described Trump’s policies as something akin to a horror show and has advocated for a digital euro as a means to preserve Europe’s financial sovereignty.

However, unlike some nations, Nagel remains firmly opposed to central banks holding Bitcoin, arguing that digital assets lack the transparency and liquidity necessary for official reserves.

A Divided Approach to Bitcoin Reserves

While Nagel and other European financial leaders caution against digital assets, differing perspectives exist.

Aleš Michl, Governor of the Czech National Bank, has expressed openness to considering Bitcoin as part of reserve diversification.

He suggested that the CNB might explore adding Bitcoin to its national reserves, signaling a potential shift in approach.

Outside Europe, independent nations like El Salvador continue to accumulate Bitcoin, while several U.S. states have introduced legislation to create state-controlled Bitcoin reserves.

Meanwhile, Michael Saylor’s investment firm, Strategy, recently announced a $10.7 million Bitcoin purchase and revealed plans to raise $21 billion to expand its holdings.

The debate surrounding Bitcoin’s role in national reserves reflects a broader divide.

Some see digital assets as a modern tool for financial innovation, while others emphasize the importance of maintaining stability and transparency in central banking.

As Trump’s policies continue to reshape the global financial order, European leaders and central banks face mounting pressure to adapt.

Whether through reinforcing the euro, pursuing digital alternatives, or addressing trade challenges, their responses will likely define the next phase of international financial stability.

Frequently Asked Questions (FAQs)

What potential risks arise from adopting a pro-crypto stance in national policy?

A pro-crypto policy invites rapid market shifts and hidden vulnerabilities. Without stringent oversight, these strategies may spark cross-border economic turbulence and yield unpredictable financial outcomes.

How could European financial policies be affected by U.S. crypto moves?

European banks may adjust reserve plans and explore digital alternatives as U.S. crypto support shifts market dynamics. This response could reshape regulatory stances and spur transatlantic fiscal reform.

What steps can policymakers take to manage crypto-related market risks?

Policymakers may adopt stricter oversight and clear guidelines to control crypto market risks. Experts recommend balanced measures that blend financial prudence with advancement to stabilize systems and curb fallout.

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Rep. Donalds Introduces Bill to Protect Trump’s Bitcoin Reserve

2025年03月17日

This move has garnered attention as it seeks to cement the reserve into law. It aims to prevent any future changes that could undermine its value or stability.

The bill, which would make the Strategic Bitcoin Reserve a permanent fixture, aims to safeguard the nation’s financial future by having it.

Rep. Donalds Champions Bitcoin Reserve for Economic Stability

While the idea of a Bitcoin-backed reserve has been met with mixed reactions, Donalds believes it could act as a hedge against economic uncertainty, much like gold has for decades. The reserve, originally proposed by President Trump, would be a bold move for the U.S. as it looks to keep pace with global economic shifts. With inflation concerns and fluctuating markets, the reserve would give the U.S. more flexibility to protect its economic stability.

By introducing this bill, Donald is not only solidifying Trump’s vision but also sending a clear message that the U.S. is ready to embrace new technologies in its financial framework. The bill would make it much harder for future administrations to dismantle or alter the reserve, ensuring that the country remains ahead of the curve in the digital age.

Bank of Korea Cautious on Bitcoin for Reserves

The Bank of Korea (BOK) has voiced concerns about adding Bitcoin to its foreign exchange reserves. They say that the price of Bitcoin is volatile. Also, the potential risks it could pose to the stability of reserves.

The BOK emphasized that Bitcoin does not align with the International Monetary Fund’s (IMF) standards. The reason is for foreign exchange reserve management, which stresses the importance of managing liquidity, market, and credit risks prudently. Given these factors, the BOK remains cautious about incorporating bitcoin into its official reserves.

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