Amundi Warns US Stablecoin Bill Risks Dollar Hegemony: GENIUS Act May Accelerate Currency Substitution

Key Takeaways:

• The GENIUS Act could create unintended consequences for dollar dominance
• Stablecoins may become a “substitute” for the US dollar
• Stablecoin providers could operate as unregulated quasi-banking institutions
• The stablecoin market is projected to reach $3.7 trillion by 2030

Amundi’s Warning Over Systemic Implications

Amundi, Europe’s largest asset management company, has warned that the United States’ proposed GENIUS Act might catalyze exponential growth in dollar-backed stablecoins. Instead of reinforcing the dollar’s influence, this expansion might inadvertently create unforeseen systemic risks. This could destabilize the global payment infrastructure and progressively diminish the dollar’s long-term dominance.

Amundi’s Chief Investment Officer, Vincent Mortier said, “It could be genius, or it could be evil.”. Mortier points out the irony – while dollar-pegged stablecoins were supposed to strengthen the greenback’s global dominance, officially endorsing them might backfire. Instead of propping up the dollar, we could end up creating a competitor that actually undermines it.

Concerns About Full Collateralization Requirements

Mortier’s view is focused on the GENIUS Act’s requirement that dollar-backed stablecoins must be fully collateralized by assets of equivalent or greater value. While this could boost demand for US Treasury bonds, it could also send the message that “the dollar is not that strong,” he warned.

Furthermore, Mortier also cautioned that companies issuing stablecoins could become “quasi-banks,” a role they were never intended to play, potentially destabilizing the global payments system.

GENIUS Act Legislative Progress

On June 17th, the U.S. The Senate approved the Payment Stablecoin Act (better known as the GENIUS Act), putting it on track to become law. This landmark bill sets new federal reserve and capital requirements for stablecoin companies. It now heads to the House of Representatives for final approval.

The passage of the GENIUS Act could pave the way for major companies to issue their own stablecoins, with Apple, Google, and X reportedly exploring this possibility. Treasury Secretary Scott Bessent predicts stablecoins could become a $3.7 trillion market by 2030.

Strong Growth in the Stablecoin Market

Stablecoins are still crushing it as crypto’s fastest-growing corner. Their total market cap has rocketed past $250 billion—nearly doubling since early 2023. JPMorgan forecasts the circulating stablecoin supply to double again in the coming years.

Stablecoins are considered a type of real-world asset (RWA) because they are backed by government bonds, fiat currencies, and other tangible assets. The total value of stablecoins is currently $254 billion, with US dollar-pegged assets accounting for 98% of the market.

Positive Impact on Tokenization and RWA

According to Abdul Rafay Gadit, a former Standard Chartered executive and founder of ZigChain, GENIUS Act could significantly accelerate adoption beyond stablecoins, driving advancement across the broader real-world asset tokenization landscape and institutional blockchain integration. 

For the tokenization world, the GENIUS Act doesn’t just help, it’s a game-changer. As Gadit puts it, the law ‘takes the scary unknowns out of using digital cash in token projects.’ That means building legit RWA marketplaces with baked-in crypto payments just got way simpler. And that’s huge news for real estate, trade finance, and sukuk deals, where rule clarity makes or breaks everything.