French central Bank governor raises concern about Trump’s crypto policy

Trump’s crypto policy raises concern:

The Governor of the French Central Bank, François Villeroy de Galhau, has raised concerns about former U.S. President Donald Trump’s support for cryptocurrency. He believes that Trump’s policies could lead to financial instability, not only in the United States but also in global markets. Trump’s administration has taken a strong pro-crypto stance, a sharp contrast to the previous government’s strict regulations. This shift has gained support from digital asset advocates but has also sparked criticism from financial experts.

One of Villeroy de Galhau’s main concerns is that financial crises often start in the U.S. and spread worldwide. By further integrating cryptocurrencies into the economy, he fears that Trump could be laying the foundation for another financial crisis. The increased involvement of non-bank financial services, such as crypto exchanges, could lead to unpredictable consequences for global markets. Many European leaders are watching these developments with caution, worried about potential ripple effects.

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Trump’s administration recently announced the creation of a Strategic Bitcoin Reserve, a move that has stirred debate about government involvement in digital assets. Additionally, he plans to reverse Operation Choke Point 2.0, a policy that restricted crypto firms from accessing banking services. While these steps are welcomed by crypto enthusiasts, critics argue that they could increase risks for traditional financial institutions and investors. Some experts warn that loosening regulations on digital assets may encourage market manipulation and instability.

The crypto market has already felt the impact of Trump’s policies. Bitcoin’s price fell below $85,000 after his executive order, resulting in $250 million in liquidations. This price drop highlighted the extreme volatility of cryptocurrencies and raised concerns about the potential dangers of government-backed investments in digital assets. Many financial analysts worry that such instability could affect traditional markets and lead to wider economic disruptions.

Critics, including economist Peter Schiff, have strongly opposed Trump’s Strategic Bitcoin Reserve. Schiff warned that it could become “the biggest crypto rug pull of all time,” suggesting that it may lead to market manipulation that benefits insiders at the expense of regular investors. Public sentiment also reflects growing concerns. A recent survey showed that most American voters oppose using taxpayer money for a national Bitcoin reserve, fearing that investing in such a volatile asset could result in financial losses.

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Meanwhile, Europe is preparing for potential consequences from the U.S. crypto policies. Villeroy de Galhau has urged the European Union to strengthen the euro’s global role and develop a stronger savings and investment framework. Additionally, France is closely watching Trump’s new trade tariffs, such as the 25% tax on European cars. European leaders believe that rather than simply reacting to U.S. actions, they must take proactive steps to protect their economic interests. As Trump continues to promote cryptocurrency, the global debate over its risks and benefits remains heated, with uncertainty surrounding its long-term role in national economies.