Europe’s largest asset manager, Amundi, has raised alarms over the potential global fallout from a surge in United States’ dollar-backed stablecoins, warning that it could significantly disrupt international money flows and threaten financial stability.
The concerns come in the wake of the U.S. Senate’s passage of the GENIUS Act, a landmark bill that sets out a regulatory framework for stablecoins pegged to the U.S. dollar.
The legislation is widely expected to clear the House of Representatives and receive approval from President Donald Trump, paving the way for a wave of mainstream adoption.
Vincent Mortier, Chief Investment Officer at Amundi, which oversees €2 trillion ($2.36 trillion) in assets, told Reuters the implications of the Act could be far-reaching. “It could be genius, or it could be evil,” he said. “The mass adoption of dollar-backed stablecoins could destabilize the global payments system.”
One of the core concerns is the risk of “dollarization”, where people in other countries increasingly adopt U.S.-pegged digital currencies—sidestepping local financial systems and monetary policies. Currently, 98% of all stablecoins are pegged to the dollar, yet more than 80% of transactions occur outside the United States.
JPMorgan has forecast that the total value of stablecoins in circulation could double to $500 billion in the coming years, while some analysts believe it could climb as high as $2 trillion. Under the GENIUS Act, stablecoins must be backed by U.S. Treasury bonds, potentially boosting demand for U.S. debt—a boon for Washington as it battles ballooning deficits.
However, Mortier warned that such developments could backfire. “By promoting a stablecoin, a country might inadvertently signal that the U.S. dollar isn’t strong enough on its own. This paradoxically could weaken the dollar in the long run.”
The unease is shared across Europe. Italy’s Finance Minister, Giancarlo Giorgetti, cautioned in April that U.S. stablecoin policy could pose an even greater threat to European financial stability than Trump’s trade war. He warned that easy access to U.S.-dollar assets without the need for a U.S. bank account could tempt millions and undermine countries’ monetary sovereignty.
The Bank for International Settlements has also flagged stablecoins as a risk, citing transparency concerns, the potential for capital flight from emerging markets, and the erosion of central bank control over national currencies.
Mortier added that stablecoins, in effect, act like “quasi-banks,” with users expecting instant access to funds while also using them as direct payment instruments. Though Amundi currently holds no crypto assets, the firm is closely monitoring developments. “I haven’t made up my mind completely,” Mortier said. “But the possibility of widespread uptake affecting global financial stability is real.”
