The US’ GENIUS Act Could Be A Disaster Waiting To Happen, Amundi Warns
The post The US’ GENIUS Act Could Be A Disaster Waiting To Happen, Amundi Warns appeared on BitcoinEthereumNews.com. Key Insights: The U.S. Senate passed the GENIUS Act to strengthen stablecoin oversight. However, the Amundi asset manager warns the GENIUS Act could unintentionally weaken the U.S. dollar’s dominance. Despite warnings, the stablecoin market has grown to over $254 billion, and will likely hit $3.7 trillion by 2030. The GENIUS Act, which was recently passed by the U.S. Senate, is meant to strengthen the stablecoin market and improve oversight over the sector. However, not everyone sees it as a win for the US dollar and its economy. In fact, Amundi, the largest asset manager in Europe has just raised several reasons why the bill could backfire. Here’s why the GENIUS Act could lead to long-term issues with payments and even weaken the U.S. dollar’s dominance. What Is the GENIUS Act? The GENIUS Act was passed by the U.S. Senate on June 17. Put simply, the bill was put in place to make stablecoins safer, by making sure that issuers fully collateralize all dollar-backed tokens. In essence, under the GENIUS Act, all dollar-backed stablecoins must be backed 1:1 with high-quality liquid assets like U.S. Treasury bonds. This makes sure that their value remains “stable” and trustworthy for all. Amundi Asks, “Genius or Evil?” Vincent Mortier, Chief Investment Officer at Amundi, however, is not a fan of this new law. Mortier recently sat through an interview with Reuters and summed up the stakes: “It could be genius, or it could be evil,” he said One of his biggest issues with the bill is how it encourages more companies to issue fully collateralized stablecoins. Mortier says that the act might unintentionally create a system that competes with the U.S. dollar rather than strengthens it. On the surface, stablecoins backed by the dollar seem to reinforce the greenback’s role as a reserve currency.…
The post The US’ GENIUS Act Could Be A Disaster Waiting To Happen, Amundi Warns appeared on BitcoinEthereumNews.com.
Key Insights: The U.S. Senate passed the GENIUS Act to strengthen stablecoin oversight. However, the Amundi asset manager warns the GENIUS Act could unintentionally weaken the U.S. dollar’s dominance. Despite warnings, the stablecoin market has grown to over $254 billion, and will likely hit $3.7 trillion by 2030. The GENIUS Act, which was recently passed by the U.S. Senate, is meant to strengthen the stablecoin market and improve oversight over the sector. However, not everyone sees it as a win for the US dollar and its economy. In fact, Amundi, the largest asset manager in Europe has just raised several reasons why the bill could backfire. Here’s why the GENIUS Act could lead to long-term issues with payments and even weaken the U.S. dollar’s dominance. What Is the GENIUS Act? The GENIUS Act was passed by the U.S. Senate on June 17. Put simply, the bill was put in place to make stablecoins safer, by making sure that issuers fully collateralize all dollar-backed tokens. In essence, under the GENIUS Act, all dollar-backed stablecoins must be backed 1:1 with high-quality liquid assets like U.S. Treasury bonds. This makes sure that their value remains “stable” and trustworthy for all. Amundi Asks, “Genius or Evil?” Vincent Mortier, Chief Investment Officer at Amundi, however, is not a fan of this new law. Mortier recently sat through an interview with Reuters and summed up the stakes: “It could be genius, or it could be evil,” he said One of his biggest issues with the bill is how it encourages more companies to issue fully collateralized stablecoins. Mortier says that the act might unintentionally create a system that competes with the U.S. dollar rather than strengthens it. On the surface, stablecoins backed by the dollar seem to reinforce the greenback’s role as a reserve currency.…
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