• ECB official warns U.S. crypto policies could trigger future global financial crises.
• Europe worries U.S. crypto influence may threaten its financial autonomy.
• Trump’s crypto reserve aims to elevate the U.S. as the crypto capital.

A top official at the European Central Bank (ECB) has expressed concerns about the growing role of cryptocurrencies in the United States, suggesting it could destabilize finances.

François Villeroy de Galhau, a member of the ECB’s governing council, thinks the US government’s support for crypto assets and non-bank finance could be setting up a future financial crisis. 

ECB’s Specific Worry About US Crypto

Villeroy told Bloomberg, “The United States risks sinning 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 American administration is sowing the seeds of future upheavals,” 

The ECB has taken a more organized approach to crypto rules, trying to better handle the risks that come with digital assets and finance outside of banks. European officials are also increasingly worried about what the US’s crypto-friendly policies mean for the world. 

Related: Bitcoin Consolidates, Analyst Warns of Altcoin Collapse, Eyes $180K BTC

Is Europe Concerned About US Crypto’s Power?

A big worry for Europe is that America’s increasing power in the crypto world could hurt Europe’s financial independence. 

This is especially on their minds as countries in Europe move forward with plans for a digital euro to compete with the US dollar’s global lead.

Villeroy also pointed out that the euro needs to be stronger in global finance. He suggested creating a strong savings and investment setup to bring international money to Europe.

Villeroy’s comments come as US policy seems to be changing under President Donald Trump’s administration, which has shown more enthusiasm for crypto. Trump even signed an executive order to create a Federal bitcoin reserve. 

Adding to this, on March 7th, Trump held the first-ever Crypto Summit at the White House. During this, he talked about the idea of a strategic crypto reserve, something he’s been mentioning since his campaign last year. 

Related: Trump-backed World Liberty Financial’s crypto buys spark insider trading

Trump’s idea is part of his plan to make the US the “crypto capital of the world.” The order got people talking in the market, especially since Trump named Bitcoin, Ether, XRP, Solana, and Cardano as the digital assets he expects to be in this reserve. However, this proposed crypto reserve wouldn’t work like a typical reserve to stabilize things in a crisis; instead, the hope is that Bitcoin’s value will go up over time.