Executive of Europe's Largest Asset Manager Warns: US Genius Act Could Undermine Dollar’s Dominance
Summary
- Amundi's Chief Investment Officer stated that the Genius Act could result in a long-term weakening of the dollar’s dominance.
- He suggested that the bill may create new alternatives in the market that could further promote dollar weakness.
- He expressed concern that if stablecoin issuers take on roles similar to banks, instability in the global payment system could increase.
Vincent Mortier, Chief Investment Officer (CIO) of Europe's largest asset manager Amundi, expressed concerns in an interview with Reuters that the US-proposed stablecoin regulation bill, the Genius Act, could weaken the dollar’s long-term dominance.
According to Cointelegraph, a crypto-specialized media outlet, on the 3rd (local time), Mortier stated that the Genius Act could create new alternatives in the market that might spur further dollar weakness. He added, “Of course, stablecoins may increase demand for US Treasuries, but at the same time, it could send the message to the market that the dollar is not an absolutely safe asset.”
He further remarked, “If stablecoin issuers begin to perform functions similar to banks, instability in the global payment system could increase.”
JH Kim
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