European asset manager Amundi has warned that the US GENIUS Act may lead to an increase in dollar-backed stablecoins, potentially jeopardizing the global payment system and the dollar's long-term dominance. Vincent Mortier, Amundi’s chief investment officer, expressed concerns that while stablecoins have been viewed positively, promoting them could undermine the US dollar’s strength by suggesting that it is not fully collateralized with adequate assets. This change may attract companies like Apple and Google to issue their own stablecoins, transforming them into ‘quasi-banks’ and destabilizing payment systems as a result. The GENIUS Act aims to regulate stablecoins through reserve and capital requirements and has already passed the Senate. If enacted, stablecoins could represent a $3.7 trillion market by 2030, growing rapidly in popularity and value since the start of 2023. Abdul Rafay Gadit highlighted the potential for the legislation to create opportunities not only for stablecoins but also for the broader sector of Real World Assets and tokenization.

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