François Villeroy de Galhau, a top European Central Bank official, warned that the Trump administration's pro-crypto policies could lead to a financial crisis. In an interview with French media, he stated that the U.S. could be ‘sowing the seeds’ for upheavals by promoting cryptocurrencies and non-bank finance. Villeroy highlighted that financial crises often start in the U.S. and spread worldwide, criticizing Trump's approach as a ‘false vision’ of a zero-sum game in the global economy. This comes on the heels of warnings from sixteen Nobel laureates who said Trump's fiscal policies might reignite inflation and instability. Meanwhile, the ECB is evolving its digital payments infrastructure, potentially paving the way for a central bank digital currency. Despite Trump's push for crypto, market reactions suggest instability, with Bitcoin experiencing significant downturns amid broader economic concerns, including escalating U.S. tariff disputes that affected equities and crypto markets alike.

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