Amundi warns about risks of US stablecoin policy potentially destabilizing global payment system.

Europe’s largest asset manager raises concerns about a surge in dollar-backed stablecoins due to the GENIUS Act, potentially destabilizing the global payment system. The U.S. Senate passed the bill to regulate U.S.-dollar-pegged cryptotokens, causing fears of ‘dollarization’ in other economies. JPMorgan predicts stablecoin circulation to double to $500 billion.

Stablecoins pegged to the dollar under the U.S. act would drive the purchase of U.S. Treasury bonds, benefiting the U.S. financially but potentially weakening the dollar. Italy’s finance minister warns of stablecoin policies threatening European financial stability. The Bank for International Settlements echoes concerns about stablecoins undermining monetary sovereignty.

Amundi’s chief investment officer voices concerns about the impact of stablecoins on financial stability. With 98% pegged to the dollar, stablecoins could become “quasi-banks” and a direct means of payment. Mortier oversees Amundi’s 2 trillion euros of assets and remains undecided on stablecoin adoption. Italy’s finance minister and the Bank for International Settlements also warn of the risks posed by stablecoins.

Read more at Yahoo Finance: Amundi warns US stablecoin policy could destabilise global payments system