European asset manager Amundi has expressed concerns that the recently passed US GENIUS Act may inadvertently destabilize the global payment system and challenge the dominance of the US dollar. According to Amundi's chief investment officer, Vincent Mortier, while promoting dollar-backed stablecoins could boost demand for US Treasury bonds, it may also signal weaknesses in the dollar's strength. The Act, which moves to impose reserve and capital requirements on stablecoin issuers, could empower companies like Apple and Google to create their own stablecoins, thereby potentially turning them into 'quasi-banks.' This situation raises fears about the implications for global financial stability, as the total value of stablecoins has surged to over $250 billion, with projections predicting a substantial market growth by 2030. Mortier cautioned that this regulatory shift could lead to an alternative system undermining the necessity for full collateralization, thus elevating risks across the financial ecosystem. The GENIUS Act may consequently affect not just stablecoins but also impact broader tokenization efforts, particularly in sectors such as real estate and trade finance.

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