In an exclusive interview with French weekly La Tribune Dimanche on March 15, French Central Bank Governor François Villeroy de Galhau cautioned that U.S. President Trump’s policies—particularly his support for digital assets and deregulation—could destabilize the global financial system.

He argued that these measures might introduce new financial risks, warning that such risks often originate in the United States before spilling over into global markets.

How Trump’s Policies Could Trigger Global Financial Upheavals

Villeroy de Galhau explained that Trump’s policies are sowing the seeds of future upheavals.

He emphasized that history has shown how financial crises frequently begin in the U.S. before expanding globally.

He cited historical patterns, noting that three of the past five major financial crises originated in the United States: the Great Depression in 1929, the 1973 OPEC Oil Price Shock, and the 2008 Great Recession. Each had major global repercussions.

Villeroy de Galhau argued that the current trajectory of Trump’s policies—particularly the focus on deregulation and support for digital assets—mirrors risky behaviors that have historically led to financial instability.

French Central Bank Governor’s Crypto Warning on Trump’s Policies

The French central bank governor’s warning comes amid recent U.S. policy shifts concerning cryptocurrency.

President Trump recently signed an executive order announcing the creation of a Strategic Bitcoin Reserve, a move that ignited sharp debate over the federal government’s involvement in digital assets.

Additionally, the proposed rollback of Operation Choke Point 2.0, which previously limited crypto firms’ access to banking services, signals another shift toward deregulation.

Critics argue Trump’s policies on deregulation introduce unnecessary systemic risks, particularly given the volatile nature of crypto markets.

While proponents applaud these decisions as steps toward financial autonomy, the immediate impact has not been without consequence.

Last week, Bitcoin’s price plunged below $84,000 after the executive order was announced, triggering over $250 million in liquidations.

This sharp decline underscored concerns regarding the extreme volatility of digital assets and their potential effect on broader financial stability.

Economist Peter Schiff, a well-known Bitcoin critic, echoed these sentiments, arguing that Bitcoin’s price swings make it an unreliable asset for national reserves.

Schiff warned that Trump’s policies could end up disproportionately benefiting insiders while exposing taxpayers and banks to avoidable risks.

Villeroy de Galhau’s concerns extend beyond cryptocurrencies, touching on broader aspects of Trump’s policies, including trade measures that could further strain international relations.

Europe’s Response to Trump’s Tariffs and Bitcoin Push

Trump’s trade policies have also sparked tension across the Atlantic.

Villeroy de Galhau criticized Trump’s trade strategies, including recent tariff hikes and deregulation efforts, describing them as harmful to the American economy and problematic for European allies.

One focal point is Trump’s introduction of a 25% tariff on European cars.

The decision has raised alarms among European Union leaders, particularly in France.

Villeroy de Galhau stressed that Europe must avoid reacting passively to such moves and instead negotiate from a position of strength.

To safeguard financial stability, European leaders are exploring several measures. Villeroy de Galhau has called for strengthening the euro’s global role, improving Europe’s savings and investment framework, and enhancing financial independence.

His message is clear: Europe must take decisive action to shield itself from the ripple effects of Trump’s policies.

German central bank chief Joachim Nagel shares similar concerns. He described Trump’s policies as something akin to a horror show and has advocated for a digital euro as a means to preserve Europe’s financial sovereignty.

However, unlike some nations, Nagel remains firmly opposed to central banks holding Bitcoin, arguing that digital assets lack the transparency and liquidity necessary for official reserves.

A Divided Approach to Bitcoin Reserves

While Nagel and other European financial leaders caution against digital assets, differing perspectives exist.

Aleš Michl, Governor of the Czech National Bank, has expressed openness to considering Bitcoin as part of reserve diversification.

He suggested that the CNB might explore adding Bitcoin to its national reserves, signaling a potential shift in approach.

Outside Europe, independent nations like El Salvador continue to accumulate Bitcoin, while several U.S. states have introduced legislation to create state-controlled Bitcoin reserves.

Meanwhile, Michael Saylor’s investment firm, Strategy, recently announced a $10.7 million Bitcoin purchase and revealed plans to raise $21 billion to expand its holdings.

The debate surrounding Bitcoin’s role in national reserves reflects a broader divide.

Some see digital assets as a modern tool for financial innovation, while others emphasize the importance of maintaining stability and transparency in central banking.

As Trump’s policies continue to reshape the global financial order, European leaders and central banks face mounting pressure to adapt.

Whether through reinforcing the euro, pursuing digital alternatives, or addressing trade challenges, their responses will likely define the next phase of international financial stability.

Frequently Asked Questions (FAQs)

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Malaysia is witnessing a sharp rise in crypto investment scams, with authorities warning that professionals and senior citizens are increasingly becoming prime targets.

According to a report from TheMalaysianReserve, Bukit Aman Commercial Crime Investigation Department (JSJK) Director Datuk Seri Ramli Mohamed Yoosuf has urged caution, particularly for investors over 60 years old who might be lured by the promise of high returns.

Victims Of Crypto Investment Scams Increasing

Ramli highlighted a recent case in which a 74-year-old lost tens of millions of ringgit after falling victim to a fraudulent scheme.

Many of these scams operate under the illusion that purchasing multiple cryptocurrency coins, each worth hundreds of thousands of ringgit will guarantee enormous profits.

However, as he clarified, “no investment is made; it’s purely a scam.”

Beyond cryptocurrency fraud, phone scams remain a growing concern. Scammers often impersonate trusted authorities such as financial regulators, banks, and law enforcement agencies to manipulate victims into handing over their money.

Ramli emphasized that legitimate agencies such as the Royal Malaysia Police, the Inland Revenue Board, and Bank Negara Malaysia do not operate through elaborate multi-step phone calls where victims are transferred between different departments.

The increasing complexity of these scams can be attributed to rapid technological advancements.

Cyber-enabled and cyber-dependent crimes have become more sophisticated. They often leverage AI-based tools and deepfake technology to convincingly impersonate officials or reputable cryptocurrency projects.

Experts warn that these tactics will likely evolve, making scams even more difficult to detect.

Growing Threat of Unregulated Investment Schemes

The Malaysian Digital Asset Platform Association (MDAPA) has raised concerns that scammers are exploiting social media platforms to prey on vulnerable groups, particularly senior citizens seeking financial security in retirement.

Many fraudulent actors impersonate agents of legitimate digital asset exchanges, tricking investors into transferring funds under false pretenses.

MDAPA stresses that approved exchanges will never guarantee investment returns, flaunt displays of wealth, or use third-party intermediaries. In fact, its rigorous regulatory approval process has sent top exchanges like ByBit away.

Investors must conduct all transactions themselves via official exchange platforms or mobile applications.

The Securities Commission Malaysia has approved only six digital asset exchanges, including HATA Digital, Luno Malaysia, MX Global, SINEGY DAX, Tokenize Technology, and Torum International.

Additionally, two initial exchange offering platforms, Pitch Platforms and Kapital DX, have been approved.

Investors are strongly advised to check the Securities Commission Malaysia’s official website for a list of regulated digital asset players before making any financial commitments.

Malaysia’s Countermeasures Against Fraud

In response to the surge in investment scams, Malaysian authorities are leveraging advanced technology to track illicit transactions and enhance fraud detection.

AI-powered systems and blockchain analytics are being integrated into law enforcement strategies to identify fraudulent activities more effectively.

Authorities have also intensified enforcement efforts, leading to many arrests.

According to the report, the JSJK reported 23,000 successful arrests linked to scam syndicates across Malaysia last year.

Many of these fraudulent operations are run from luxury condominiums in high-density areas such as Selangor, Kuala Lumpur, and Penang, further complicating tracking and enforcement efforts.

Beyond cryptocurrency fraud, Malaysia is also grappling with a rise in illegal Bitcoin mining activities.

Authorities have uncovered numerous cases of miners illicitly tapping into electricity grids, resulting in hundreds of millions of ringgit in financial losses. The most recent one was on February 13, following a blast caused by the miners.

This further highlights the broader issue of financial crimes linked to the crypto industry.

To combat these threats, Malaysian authorities urge the public to stay vigilant and report suspected scams to the Commercial Crime Investigation Department via 03-26101559 or the National Scam Response Centre at 997.

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