Immy Dorse 
Europe’s Top Asset Manager Warns About Stablecoin Risks
Amundi, Europe’s biggest asset manager, isn’t sold on the idea that U.S.-regulated stablecoins will strengthen the dollar. In fact, they’re worried it might do the opposite. With over €2 trillion in assets under management, the firm raised concerns this week that the GENIUS Act—a new U.S. bill to regulate dollar-backed crypto tokens—could end up undermining the dollar’s dominance rather than securing it.
Vincent Mortier, Amundi’s chief investment officer, put it bluntly in a Reuters interview: “It could be genius, or it could be evil.” His skepticism isn’t unfounded. The bill, which passed the Senate last month, requires stablecoins to be pegged to the dollar. That might sound like a win for U.S. currency, but Mortier thinks it could backfire.
How Stablecoins Might Weaken the Dollar
The logic is counterintuitive but worth considering. If stablecoins become a widely accepted alternative to traditional dollars, countries and institutions might start relying less on actual dollar reserves. “You create an alternative to the U.S. dollar,” Mortier said, “and that could lead to more weakening of the dollar.”
He’s not alone in thinking this. Some analysts argue that promoting dollar-pegged stablecoins sends a mixed message—like admitting the dollar isn’t strong enough on its own. And with stablecoin circulation expected to hit $500 billion by 2028, according to JPMorgan, the scale of this shift isn’t trivial.
What the GENIUS Act Actually Does
The bill, officially called the Guiding and Establishing National Innovation for U.S. Stablecoins Act, is now headed for a House vote in mid-July. Supporters say it’ll bring much-needed clarity to the crypto space, protect consumers, and keep the U.S. ahead in the digital currency race.
But critics, including Amundi, see potential pitfalls. Even though stablecoins would be tied to the dollar, their rapid global adoption—especially outside the U.S.—could complicate things. Over 90% of stablecoins are already dollar-denominated, but if they start circulating more freely in places with shaky local currencies, the long-term effects on global money flows are hard to predict.
Mortier’s warning isn’t just about economics—it’s about perception. If stablecoins become the go-to for international transactions, the dollar’s role as the world’s reserve currency might not look so unshakable anymore. And once that idea takes hold, reversing it won’t be easy.
For now, though, the bill’s fate rests with U.S. lawmakers. Whether it stabilizes the dollar or accidentally chips away at its power, we’ll likely find out sooner than anyone expects.