Urgent Warning: GENIUS Act Threatens Dollar Dominance and Global Financial Stability

Key Points

1. The GENIUS Act promotes and regulates fully collateralized stablecoins, which could undermine the U.S. dollar's global supremacy.

2. Amundi's Chief Investment Officer Vincent Mortier warns that the Act might transform stablecoin issuers into 'quasi-banks,' competing with traditional dollar-based systems.

3. Stablecoins, pegged to fiat currencies like the U.S. dollar, play a key role in bridging cryptocurrencies and traditional finance, but their regulation poses a dilemma between innovation and oversight.

4. The Act could disrupt global payments by creating alternative dollar-denominated channels, potentially challenging existing systems.

5. Amundi highlights the risk of the GENIUS Act destabilizing global financial stability if the U.S. dollar's reserve currency role is significantly weakened.