- ECB’s Villeroy warns U.S. crypto policies could spark global financial instability, urging stronger regulation compared to Europe.
- Villeroy supports digital assets in Europe, advocating for tokenization and CBDCs to enhance financial efficiency and stability.
Francois Villeroy de Galhau, a senior official at the European Central Bank (ECB), has raised concerns over the risks posed by U.S. cryptocurrency policies. In an interview with the French weekly La Tribune Dimanche, Villeroy warned that the U.S.’s support for digital assets and non-bank finance could lead to a financial crisis, echoing fears that financial crises often start in the U.S. and affect the global economy.
Villeroy emphasized that the United States’ backing of digital assets and non-bank financial systems may set the stage for another financial riot. He noted, “The U.S. risks sinning through negligence.” Villeroy expressed concern that while European financial supervision remains stronger, the U.S. is adopting policies that might weaken the financial system, thereby creating a risk to global stability.
This statement follows a growing sentiment within European institutions that recent trends in the U.S. financial view regarding digital currencies could lead to serious implications. Unlike the more relaxed U.S. approach, Villeroy added that Europe’s regulatory framework, including its banking regulations, is better equipped to handle such risks.
Europe’s Financial Supervision Contrasted with U.S. Policies
According to Villeroy, the U.S. has created an environment that encourages using digital currencies and non-bank finance, which could lead to future outages. He noted that while crises have traditionally originated in the U.S., their effects tend to ripple worldwide. Additionally, Villeroy warned that by promoting crypto-assets, the U.S. is laying the foundation for another financial emergency.
ENTRETIEN #EXCLUSIF avec François Villeroy de Galhau, gouverneur de la @banquedefrance :
« Il vaut mieux aujourd’hui être Européen qu’Américain »
En tant que gouverneur de la Banque de France, François Villeroy de Galhau déplore la guerre commerciale lancée par… pic.twitter.com/ZZiTJRJuHE
— La Tribune Dimanche (@TribuneDimanche) March 16, 2025
In contrast, Villeroy highlighted that Europe has strengthened its regulatory stance. He pointed to recent European efforts, such as the Markets in Crypto-Assets (MiCA) regulation as per our previous report, which is intended to regulate the digital asset industry.
Villeroy’s Vision for Digital Assets in Europe
Despite his concerns over U.S. policies, Villeroy has been an advocate for the inclusion of digital assets within Europe’s financial framework. He expressed support for asset tokenization, which he believes could improve trading and post-trade processes.
In January, Villeroy argued that tokenization could accelerate the implementation of same-day settlements, boosting the efficiency of financial transactions.
Additionally, Villeroy noted that Europe must build a “powerful savings and investment union” to attract international investors to the euro. He suggested that digital assets could serve a big role in creating financial activity and thus improving economic stability in the region.
Villeroy has also advocated the introduction of central bank digital currencies (CBDCs) in Europe. He stressed that central banks need to embrace emerging technologies, such as tokenization, rather than waiting for complete certainty.
The Banque de France governor also mentioned that a CBDC would facilitate the conversion of tokenized assets and provide a reliable trust framework for digital financial systems.
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