(7 July 2025 – United States) Amundi Asset Management has warned rapidly expanding stablecoin volumes on the back of the successful passage of the GENIUS Act through the US Senate could disrupt capital flows and destabilise global payment systems.
After proceeding through the Senate, the US GENIUS Act is anticipated to be passed by the House of Representatives and approved by President Trump.
Other countries have expressed concern about increased ‘dollarization’ of economies if their own citizens amass stablecoins.
“It could be genius, or it could be evil. You create an alternative to the US dollar and that could lead to more weakening of the dollar. Because if a country is pushing a stablecoin, it could be perceived as pushing the message that the dollar is not that strong” stated Amundi Asset Management Chief Investment Officer, Vincent Mortier.
“I have still not fully made up my mind about stablecoins, but the worry is that a mass uptake could impact financial stability. As well as the dollarization issue, they would become ‘quasi-banks’ as people deposit money in a coin assuming they can take it out again whenever they want. They will also be used as a direct means of payment.”
“US stablecoin policies present an even more dangerous threat to European financial stability than Trump’s trade war. Access to dollars without needing a US bank account is attractive to millions of people and could undermine countries’ monetary sovereignty” warned Italian Finance Minister, Giancarlo Giorgetti.
The Bank for International Settlements (BIS) issued a similar warning on the risks posed by stablecoins, noting their potential to undermine monetary sovereignty, transparency issues and the risk of capital flight from emerging economies.
JPMorgan forecasts the value of stablecoins in circulation to double to US$500 billion in the short term while some projections run as high as US$2 trillion.