{"id":63677,"date":"2025-03-17T13:45:19","date_gmt":"2025-03-17T17:45:19","guid":{"rendered":"https:\/\/www.businessupturn.com\/usa\/?p=63677"},"modified":"2025-03-17T13:45:19","modified_gmt":"2025-03-17T17:45:19","slug":"french-central-bank-chief-warns-trumps-crypto-and-trade-policies-could-destabilize-global-markets","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/french-central-bank-chief-warns-trumps-crypto-and-trade-policies-could-destabilize-global-markets\/63677\/","title":{"rendered":"French Central Bank Chief warns Trump\u2019s Crypto and trade policies could destabilize global markets"},"content":{"rendered":"
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In a recent interview with French weekly La Tribune Dimanche<\/em> on March 15, Fran\u00e7ois Villeroy de Galhau<\/strong>, the head of France\u2019s central bank, issued a stark warning: Donald Trump\u2019s policies\u2014particularly his enthusiasm for cryptocurrency and financial deregulation\u2014could destabilize the global economy.<\/strong><\/p>\n

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Why this matters: A history of U.S.-led financial crises<\/strong><\/h3>\n

Villeroy de Galhau pointed out that financial turmoil often starts in the U.S. before rippling across the world<\/strong>. He backed up his concerns with historical examples, noting that three of the last five major financial crises<\/strong> had American origins:<\/p>\n

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  • The Great Depression (1929)<\/strong> \u2013 Triggered by a stock market crash, leading to a worldwide economic downturn.<\/li>\n
  • The 1973 OPEC Oil Shock<\/strong> \u2013 A crisis worsened by U.S. monetary policies, causing global inflation and stagnation.<\/li>\n
  • The 2008 Global Financial Crisis<\/strong> \u2013 Sparked by the collapse of the U.S. housing market and reckless banking practices, dragging the entire world into recession.<\/li>\n<\/ul>\n

    Now, Villeroy de Galhau warns that Trump\u2019s aggressive deregulation and embrace of digital currencies<\/strong> could lay the groundwork for another major financial shock<\/strong>.<\/p>\n

    A key concern is Trump\u2019s pro-crypto stance<\/strong>. His administration has introduced policies that favor digital assets and loosen restrictions on the financial sector<\/strong>. Some of the most controversial moves include:<\/p>\n

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    1. The Strategic Bitcoin Reserve<\/strong> \u2013 Trump recently signed an executive order establishing a national Bitcoin reserve<\/strong>, sparking debate over whether digital currencies should be part of official financial strategies.<\/li>\n
    2. Rolling Back Operation Choke Point 2.0<\/strong> \u2013 His administration is making it easier for crypto companies to access traditional banking services, removing barriers that were put in place to prevent financial instability.<\/li>\n<\/ol>\n

      While crypto enthusiasts<\/strong> see these moves as groundbreaking steps toward financial innovation, critics warn they could create chaos<\/strong>.<\/p>\n

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      Immediate market reactions: Bitcoin\u2019s rollercoaster ride<\/strong><\/h3>\n

      The impact of Trump\u2019s crypto policies was felt almost immediately. Following the announcement of the Strategic Bitcoin Reserve<\/strong>, Bitcoin\u2019s price plummeted below $84,000<\/strong>, wiping out over $250 million<\/strong> in investments through liquidations.<\/p>\n

      Economist Peter Schiff<\/strong>, a long-time Bitcoin skeptic, criticized the move, arguing that cryptocurrency\u2019s extreme volatility makes it a poor choice for national reserves<\/strong>. He further warned that Trump\u2019s crypto-friendly stance could end up benefiting wealthy insiders while exposing regular taxpayers and banks to significant risks<\/strong>.<\/p>\n

      Villeroy de Galhau\u2019s concerns extend beyond just Bitcoin<\/strong>. He also raised alarms about Trump\u2019s protectionist trade policies<\/strong>, which could strain U.S.-Europe relations<\/strong>.<\/p>\n

      One of the biggest flashpoints? Trump\u2019s 25% tariff on European cars<\/strong>, a move that has frustrated European leaders\u2014especially in France and Germany<\/strong>.<\/p>\n

      Rather than simply reacting to Trump\u2019s economic policies, Villeroy de Galhau urges European countries to take proactive steps<\/strong> to strengthen their financial independence.<\/p>\n

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      Europe\u2019s Response: Strengthening the euro and exploring digital alternatives<\/strong><\/h3>\n

      To safeguard financial stability, European leaders are considering multiple strategies<\/strong>, including:<\/p>\n

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      • Strengthening the euro\u2019s global role<\/strong> to reduce dependence on the U.S. dollar.<\/li>\n
      • Enhancing Europe\u2019s financial independence<\/strong> by creating stronger savings and investment frameworks.<\/li>\n
      • Exploring digital alternatives<\/strong>, such as a central bank digital currency (CBDC)<\/strong>, to provide a stable alternative to cryptocurrencies.<\/li>\n<\/ul>\n

        German central bank chief Joachim Nagel<\/strong> has echoed these concerns, calling Trump\u2019s financial policies a \u201chorror show\u201d<\/strong> and advocating for a digital euro<\/strong> to protect European economies from external shocks.<\/p>\n

        While some European financial leaders firmly oppose Bitcoin in national reserves, not everyone agrees<\/strong>.<\/p>\n

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        • Nagel and Villeroy de Galhau<\/strong> believe Bitcoin lacks the transparency and liquidity necessary for a stable financial system<\/strong>.<\/li>\n
        • Ale\u0161 Michl, head of the Czech National Bank<\/strong>, has taken a different approach, stating that Bitcoin could be considered for reserve diversification<\/strong>\u2014a strategy already being pursued by nations like El Salvador<\/strong>.<\/li>\n<\/ul>\n

          Meanwhile, in the U.S., crypto adoption is growing<\/strong>. Some U.S. states are pushing for Bitcoin-backed reserves<\/strong>, and billionaire investor Michael Saylor\u2019s firm, Strategy, recently added $10.7 million worth of Bitcoin<\/strong> to its holdings, with plans to expand even further.<\/p>\n

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          Is the Global financial order changing?<\/strong><\/h3>\n

          With Trump doubling down on crypto deregulation, aggressive trade policies, and financial nationalism<\/strong>, global markets are at a crossroads.<\/p>\n

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          • Will Europe push for a stronger, more independent financial system?<\/strong><\/li>\n
          • Will Bitcoin become a key player in national reserves, or will traditional banks resist its volatility?<\/strong><\/li>\n
          • Could Trump\u2019s policies trigger the next big financial meltdown\u2014or will they usher in a new era of financial innovation?<\/strong><\/li>\n<\/ul>\n

            One thing is clear: the world\u2019s financial landscape is shifting fast<\/strong>, and central banks across Europe and beyond are racing to keep up.<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

            In a recent interview with French weekly La Tribune Dimanche on March 15, Fran\u00e7ois Villeroy de Galhau, the head of\u2026<\/p>\n","protected":false},"author":294,"featured_media":63678,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76],"tags":[3926,168,24882],"class_list":["post-63677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-cryptocurrency","tag-donald-trump","tag-villeroy-de-galhau"],"reading_time":"4 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/63677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/294"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=63677"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/63677\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/63678"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=63677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=63677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=63677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}