The adoption of the GENIUS Act in the US Senate, which regulates stablecoins, raises questions about its potential impact on the global economy and financial stability.
GENIUS Act: A Significant Step Forward
The passage of the GENIUS Act in the US Senate marks a crucial turning point for the crypto sector. This legislation aims to establish a legal framework for dollar-backed stablecoins, which may lead to a substantial increase in demand for such assets. The strength of the dollar may incur a new level of global dependency on it.
Systemic Risks on a Global Scale
European financial sector representatives, such as Vincent Mortier from Amundi, express concerns that stablecoins might become de facto 'quasi-banks', undermining traditional banking systems and weakening central banks, especially in emerging economies. Similar sentiments were voiced by Italy's Finance Minister, warning about the risks to financial stability in Europe.
The Future of the International Monetary System
The global future of the monetary system may be determined by cryptocurrency regulation. The GENIUS Act could emerge as a landmark in the US strategy of digital financial domination, while Europe prepares for potential confrontation.
The passage of the GENIUS Act in the US raises serious questions about the future of stablecoins and their impact on global financial stability. This situation requires careful attention and analysis from international financial institutions.
