According to an ECB official, the US is "sowing the seeds of future upheavals" by implementing crypto policies that could lead to the next global financial crisis and cause market instability around the globe.
ECB official criticizes US crypto strategy
François Villeroy de Gahlou, a member of the European Central Bank's (ECB) Governing Council, has cautioned that the US's stance on cryptocurrencies and non-bank financing may trigger the next global financial catastrophe. He stated in an interview with La Tribune Dimanche, a French publication:
The United States is risking committing sins through negligence. Financial crises often originate in the United States and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the US administration is sowing the seeds of future upheavals.
Villeroy also claimed that there was "no risk of a banking crisis in the bloc," indicating that financial surveillance in Europe is more safe. His remarks are in line with European regulators' persistent worries that the US's regulatory approach to digital assets and alternative financial systems may have disruptive effects.
In order to harness the potential of digital assets for the benefit of the country, President Donald Trump has issued an executive order creating a strategic bitcoin reserve and a stockpile of digital assets. State and federal legislation has been influenced by this federal program. In her introduction of the BITCOIN Act, Senator Cynthia Lummis suggested that one million bitcoins, or around 5% of the total quantity, be purchased in order to fortify the reserve.
Congressman Nick Begich supported this federal move by introducing a companion bill in the House. Meanwhile, a number of states have proposed such legislation. As an illustration of the growing trend of bolstering the state's financial resiliency through cryptocurrency investments, the Texas Senate recently passed SB 21, a bill to establish a Bitcoin reserve at the state level.
Additionally, once former chairman Gary Gensler left, the US Securities and Exchange Commission (SEC) withdrew lawsuits against a number of cryptocurrency companies. This policy shift represents a substantial shift from the regulatory strategy of earlier regimes and attempts to incorporate digital assets into the mainstream financial system.
Villeroy also emphasized the necessity for the euro to have a greater presence in international markets in addition to financial stability. According to him, Europe has to establish "a powerful savings and investment union, capable of attracting international investors to our currency." According to his remarks, the European objective of lessening reliance on the US dollar must be furthered by bolstering the euro's standing in international trade and finance. Reforms to make the euro a more appealing reserve currency have been advocated by European politicians in the past, but because of the bloc's disparate financial policies, progress has been sluggish. Villeroy's remarks support the ECB's stance that the economic stability and independence of the continent depend on a single European financial system.
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