Amundi: US GENIUS Act May Undermine Dollar, Disrupt Global Payments
The US GENIUS Act could lead to a rise in dollar-backed stablecoins, potentially impacting the global payment system and the US dollar's dominance. Amundi's chief investment officer, Vincent Mortier, expressed concerns that promoting stablecoins might create alternatives to the dollar, weakening its strength. The Act mandates full collateralization of stablecoins, which could increase demand for US Treasury bonds but also signal dollar weakness. Companies issuing stablecoins may assume quasi-banking roles, risking global payment system stability. The Senate passed the GENIUS Act on June 17, moving to the House for further consideration. Stablecoins are rapidly growing, with their market value exceeding $250 billion in 2023. The Act may also enhance the tokenization sector by facilitating compliant real-world asset platforms.
