Amundi warns GENIUS Act could backfire, undermining dollar dominance

Europe’s largest asset manager says the US GENIUS Act could unintentionally weaken the greenback and disrupt global payments.

European asset manager Amundi believes that the US GENIUS Act could trigger a surge in dollar-backed stablecoins, potentially causing unintended consequences for the global payment system, and even threatening the long-term dominance of the greenback itself.

“It could be genius, or it could be evil, said Vincent Mortier, Amundi’s chief investment officer, in a recent interview with Reuters. 

While dollar-backed stablecoins have long been seen as a way to guarantee the dollar’s global hegemony, promoting a stablecoin could actually create “an alternative to the US dollar […] that can could lead to more weakening of the dollar,” said Mortier.

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