Amundi, a European asset manager, warns that the US GENIUS Act may lead to a rise in dollar-backed stablecoins, which could disrupt the global payment system and challenge the dollar's dominance. Vincent Mortier, Amundi’s chief investment officer, expressed concerns in a Reuters interview, stating that while these stablecoins are intended to reinforce the dollar's global status, they might inadvertently create alternatives that weaken it. The GENIUS Act mandates full collateralization of stablecoins, which could increase demand for US Treasury bonds but also suggest a lack of strength in the dollar. Mortier cautioned that companies issuing stablecoins might assume quasi-banking roles, potentially destabilizing the payment system. Following the Senate's approval of the GENIUS Act, which aims to regulate stablecoins, it now moves to the House. The legislation could enable major companies like Apple and Google to issue their own stablecoins, with the market projected to reach $3.7 trillion by 2030. Stablecoins, backed by real-world assets, are rapidly growing, with their total value surpassing $250 billion in 2023. Read more AI-generated news on: https://app.chaingpt.org/news