European Central Bank Governing Council member Francois Villeroy de Galhau expressed concerns over the US potentially triggering the next financial crisis by supporting cryptocurrencies and non-bank finance.
Villeroy on US Crypto Policies
In an interview with the French weekly La Tribune Dimanche, Francois Villeroy de Galhau stated that the United States "risks sinning through negligence" by supporting cryptocurrencies and non-bank finance. He believes these actions contribute to global economic instability. "Financial crises often originate in the US and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals," noted Villeroy.
European Measures Suggested
Villeroy believes that to strengthen the euro's position, Europe needs to build a powerful savings and investment union capable of attracting international investors. The French banker also emphasized that asset tokenization can open new opportunities in trading and post-trade processes. For example, implementing same-day settlement (T+0) could significantly speed up operations.
Villeroy on Digital Currencies and Technology
Governor of the Banque de France Francois Villeroy de Galhau mentioned that central banks should adopt a new approach to digital currencies, not waiting for "absolute certainty" on new technology. Villeroy argues that a central bank digital currency (CBDC) would ensure convertibility between tokenized assets and serve as a reliable foundation for new technologies. ECB studies highlight the declining use of cash in daily payments, accelerating the need for digitization.
Francois Villeroy de Galhau emphasizes that the European Union should not lag behind in developing and implementing digital technologies. Regulation and adaptation to changes in financial markets are critical to ensuring stability and protecting investors in the long run.
