ECB Member Warns US of Cryptocurrency Policy Risks

The United States’ approach to cryptocurrency and non-bank financing could lead to another financial catastrophe, according to François Villeroy de Galhau, a member of the governing council of the ECB.

“The United States risks erring through negligence. Financial crises often begin in the US and then spread globally. By supporting crypto-assets and non-bank financing, the American administration is laying the groundwork for future upheavals,” he emphasized.

Villeroy de Galhau noted that the European regulatory system is more stable, and there is no risk of a banking crisis in the Eurozone.

He also called for strengthening the euro’s role on the international stage. According to Villeroy de Galhau, Europe needs to “create a powerful savings and investment union capable of attracting international investors to the currency.”

In March, US President Donald Trump fulfilled a campaign promise and signed an order to establish a strategic reserve of bitcoin and other digital assets.

Earlier, ECB advisor Jürgen Schaaf stated that the first cryptocurrency is unsuitable for national reserves due to its high volatility, lack of real economic value, and susceptibility to manipulation.