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US Dollar May Weaken as Stablecoin Regulations Reshape Global Finance

2025-07-06 04:41:51

Main Idea

The U.S. Senate's passage of the GENIUS Act, which regulates dollar-backed stablecoins, may weaken the U.S. dollar's global role by creating an alternative currency system, according to Europe's largest asset manager, Amundi.

Key Points

1. The GENIUS Act establishes oversight for U.S.-dollar-pegged crypto tokens and could reshape global financial dynamics.

2. Amundi's chief investment officer expressed skepticism about the bill's potential consequences, stating it could either be 'genius or evil.'

3. The act requires stablecoins to be pegged to the U.S. dollar but may inadvertently weaken the dollar by creating an alternative currency system.

4. JPMorgan projects stablecoin circulation could reach $500 billion by 2028, raising questions about its impact on global money flows.

5. The GENIUS Act is set for a pivotal House vote in mid-July, with U.S. policymakers advocating it as a strategic move despite concerns.

Description

Europe’s largest asset manager is sounding alarms as U.S.-regulated stablecoins surge, threatening to erode dollar dominance and destabilize global money flows at massive scale. US Dollar’s Global Role Challenged by Surge in Regulated Stablecoins A sweeping shift in global financial dynamics could be triggered by the U.S. push to regulate dollar-backed stablecoins, prompting fears of

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