Europe's largest asset manager warns that the surge in US-regulated stablecoins could weaken dollar dominance and potentially destabilize global fund flows on a large scale.
According to Bitcoin.com News on the 6th (local time), the US push to regulate dollar-backed stablecoins could trigger a comprehensive change in global financial dynamics, raising concerns about monetary instability worldwide. Amundi, Europe's largest asset manager with over 2 trillion euros (2.36 trillion dollars) in assets under management, raised concerns on July 3rd that the US Senate's passage of the GENIUS Act, a bill establishing supervision of US dollar-linked cryptocurrency tokens, could significantly reshape global fund flows.
Vincent Mortier, Amundi's Chief Investment Officer, told Reuters that the bill could be "ingenious or malicious," expressing a skeptical view of potential consequences. Since the GENIUS Act requires these assets to be pegged to the US dollar, it could stimulate greater demand for US Treasury bonds. Mortier warned that this trend could have a counterproductive effect, stating:
"By doing so, it could create an alternative to the US dollar, which could lead to further dollar weakening."
He added that "if a country promotes stablecoins, it could be perceived as promoting a message that the dollar is not that strong."
The National Innovation Guidance and Establishment Act for US Stablecoins (GENIUS Act) successfully passed the Senate in June 2025. The bill aims to create a comprehensive federal framework for regulating payment stablecoins, increasing financial stability, strengthening consumer protection, and promoting innovation within the digital asset space. The GENIUS Act now faces a crucial House vote in mid-July.
While US policymakers largely advocate for the GENIUS Act as a strategic move to solidify the US dollar's superior position in the evolving digital economy, global institutions like Amundi are expressing specific and nuanced concerns. As Mortier emphasized, despite the explicit requirement for stablecoins to be pegged to the US dollar, the bill could subtly and unintentionally weaken the dollar's unique global status, potentially contributing to overall weakening. For instance, JPMorgan forecasts stablecoin circulation to reach $500 billion by 2028. Despite over 90% of stablecoins being dollar-denominated and a significant portion of transactions occurring outside the US, this rapid expansion of the dollar-linked digital currency market raises complex questions about long-term impacts on global fund flows and the risk of broader monetary destabilization.
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