US Crypto Expansion Is ‘Sowing the Seeds’ of the Next Global Crisis, ECB’s Villeroy Warns

• ECB member François Villeroy de Galhau warns that U.S. support for crypto could trigger a global financial crisis.
• European officials push for a digital euro to counterbalance America’s stablecoin policies.
• Other European institutions have also expressed concerns over the U.S. crypto expansion.

As the U.S. government deepens its support for cryptocurrencies and non-bank finance, European officials are growing uneasy.

European Central Bank (ECB) Governing Council member François Villeroy de Galhau has issued a stark warning, arguing that America’s crypto-friendly policies could have dire global consequences.

His concerns echo those of other European institutions, which fear that the rise of stablecoins and digital assets in the U.S. may undermine financial stability in the eurozone and beyond.

ECB Official Warns U.S. Crypto Policy Could Trigger a Crisis

Villeroy de Galhau cautioned that the U.S. may be “sowing the seeds of future upheavals” by promoting crypto-assets and non-bank finance.

“The United States risks sinning through negligence,” Villeroy de Galhau told French weekly La Tribune Dimanche . “Financial crises often originate in the U.S. and spread to the rest of the world.”

The ECB policymaker asserted that Europe’s regulatory oversight is far stronger, adding that he does not foresee a banking crisis within the eurozone.

However, he urged vigilance as the U.S. continues to push forward with stablecoins and other crypto policies.

Europe Eyes Digital Euro as Countermeasure

Beyond his concerns over U.S. crypto expansion, Villeroy de Galhau advocated for strengthening the euro’s role in global finance.

He called for a “powerful savings and investment union” to attract international capital to Europe.

His remarks align with those of ECB Executive Board member Piero Cipollone, who recently urged European banks to adopt a digital euro.

Cipollone warned that U.S. President Donald Trump’s push for dollar-backed stablecoins could lure customers away from traditional banking systems.

A digital euro, backed by the ECB, would serve as a secure, interest-free alternative to stablecoins. Supporters argue it could protect Europe’s financial autonomy while providing a regulated means for digital payments.

EU Institutions Rally Against U.S. Crypto Expansion

Concerns over U.S. crypto policies extend beyond the ECB. The European Stability Mechanism (ESM) has also voiced apprehensions, calling for swift action.

ESM Managing Director Pierre Gramegna emphasized that the U.S. is rapidly advancing its stablecoin agenda, raising the urgency for Europe to respond.

According to Gramegna, the acceleration of a digital euro is crucial to maintaining Europe’s financial independence.

Additionally, the Eurogroup recently met to discuss how U.S. tech giants could leverage stablecoins to dominate global payments—an issue reminiscent of Meta’s failed Libra project.

European regulators are now reviewing the Markets in Crypto-Assets (MiCA) directive to mitigate risks posed by America’s evolving crypto landscape.