Banque de France Governor Warns U.S. Crypto Support Could Spark Next Crisis

Francois Villeroy de Galhau, the governor of the Banque de France and a member of the European Central Bank Governing Council, has expressed strong concerns about the U.S. administration's support for cryptocurrencies. In an interview with a French weekly, he warned that the U.S. could be setting the stage for the next financial crisis by embracing crypto-assets and non-bank finance. He stated that financial crises often originate in the U.S. and spread globally, and that the current administration's policies are "sowing the seeds of future upheavals."

Villeroy de Galhau has been a vocal critic of the U.S. administration's policies, even before the inauguration of the current president. He has repeatedly warned about the risks posed by the lack of regulation of non-bank financial institutions and crypto-assets. He believes that the current wave of American deregulation is dangerous and could put financial stability at risk. He has also criticized the administration's trade wars and economic policies, describing them as a "tragedy for the American economy."

Villeroy de Galhau is not alone in his criticism. Other central bank officials, including the chief of the German central bank, have also expressed concerns about the U.S. administration's policies. They believe that the lack of regulation and the embrace of crypto-assets could lead to a repeat of past financial crises. The U.S. has seen three of the five biggest financial crises in history, including The Great Depression, the OPEC Oil Price Shock of 1973, and the Great Recession.

Since the current administration came into power, there has been a significant shift in how the U.S. deals with digital assets. The Securities and Exchange Commission has dropped major cases against crypto exchanges, and the administration has created a crypto strategic reserve to stockpile tokens like Bitcoin and Ethereum. Villeroy de Galhau believes that these policies are dangerous and could have serious consequences for the global economy.